A Simple Guide to TUPE and Redundancy for Small Employers

Running a small business is challenging enough without needing to become a legal expert.

And let’s be honest, when terms like TUPE and Redundancy crop up, it can feel confusing, overwhelming and even a little scary. But with the right understanding, these situations don’t have to be daunting. Handled properly, you can protect your business, treat people fairly and avoid unnecessary risk.

What is TUPE?

TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations. In plain English, it protects employees if a business (or part of one) changes hands.

This might apply if you sell your business (or part of it), outsource a service (such as payroll, cleaning or catering) or bring a previously outsourced service back in-house.

It’s important to point out that, with TUPE, staff automatically transfer to the new employer on their existing terms and conditions.

What is Redundancy?

Redundancy happens when a job is no longer needed. This includes examples such as:

• The business closes or relocates.

• Work of a particular type has reduced or stopped.

• Technology or restructuring means fewer people are required.

It’s not about poor performance - it’s about the role genuinely disappearing.

Why Small Employers Need To Pay Attention

Even very small businesses must follow the law on TUPE and redundancy. Getting it wrong can lead to expensive claims at tribunal, reputational damage and cause upset for staff. With TUPE, because the rules can feel complex, it’s easy to make mistakes without realising.

Practical Tips For Small Businesses

For TUPE:

• Communicate early! Staff often fear the unknown, so providing clear updates help reduce anxiety.

• Check contracts thoroughly and make sure you know what’s transferring across.

• Consult with everybody properly - even with small numbers, you must inform and consult all employees.

For Redundancy:

• Be clear and transparent about the business case and document why roles are no longer required.

• Use fair selection criteria such as skills, qualifications and performance - not personal preference. You must also be consistent throughout the entire process.

• Follow the process to the letter - consultation, notice and redundancy pay (if eligible)

Need HR Support?

TUPE and redundancy may sound like complicated legal jargon, but they’re really about change, and change is something every business faces.

If you’re facing a TUPE or redundancy situation and want to feel confident you’re doing the right thing, BloomHR is here to guide you. Get in touch for friendly, practical support tailored to small businesses