Transfer rules
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TUPE protects employees’ terms and conditions of employment when a business is transferred from one owner to another: • it allows for employees of the previous owner, when the business changes hands, to automatically become employees of the new employer on the same terms and conditions; • continuity of service and any other rights are preserved; • the regulations also provide some limited opportunity for the transferee or transferor to vary, with the agreement of the employees concerned, the terms and conditions of employment contracts for a range of stipulated reasons connected with the transfer. They must be for an economical, technical or organisational reason, commonly known as an ETO; • both employers are required to inform and consult employees affected directly or indirectly by the transfer.