TUPE – WHAT IS IT & HOW DOES IT AFFECT YOU?

I know what some of you are thinking – what on earth is TUPE?

One thing we are not here to do, is provide you a whole lot of legal jargon surrounding compliance and adherence to specific laws. This blog focuses on the basics of TUPE and how this applies to suppliers who are tendering!

TUPE is an abbreviation of Transfer of Undertakings Protection of Employment.

This is commonly used in a range of industries and rarely used in others, however we still think this is useful to comprehend, as this is widely considered across many UK tenders.

Let’s give you an example:

So, Bill, Bob and Ben are all IT Technicians for a local council on behalf of Company X.

Company Y has just won the tender to provide the IT Technical Solutions Contract over a 5-year period for this local council, meaning Company X will no longer provide the services.

To ensure Bill, Bob and Ben are not made redundant or out of work due to supplier changeover, the local council has stipulated that TUPE will apply as part of Company Y’s contract win.

Company Y must then liaise with Bill, Bob and Ben and ensure their transfer from Company X over to Company Y goes without a hitch. They undergo company consultations and inductions and ensure a fair and transparent process is followed, which complies with regulations.

Make sense? – it’s basically a procedure, governed by law, to move employees and any liabilities associated with them from an old employer to a new employer, and when it comes to procurement and supplier changeover, TUPE can be rife!

How does it affect you?

Again, this is used dominantly in some sectors, whilst rarely used in others. You may find you may never have to deal with TUPE. But it’s always good to be aware of what to expect.

The likes of Engineering, Technology, Construction, Utilities, Manufacturing and Logistics, where continuous delivery/support is required with certain buyers from grass-root operatives, means TUPE majorly applies to ensure employees of Company A can continue to work on contracts when Company B takes over.

If TUPE does apply and you have to inherit one or more employees as part of the contract-win, you’ll have to consider multiple things regarding the management of TUPE as per your tender response.

What you should do:

• Assess the TUPE database! – this may be on a spreadsheet or a similar information sheet – make sure full assessment is made on this. This should detail employee liabilities, such as sick pay, holiday pay, etc. This is where the most basic details of the employee come to light, so you can ensure you can afford the staff you may potentially inherit.

• Price Correctly! – use the details of all TUPE staff (acquired from the database/information sheet) to ensure you are taking into account clear variances in your pricing model. You, as Company 2 may pay your staff a specific amount, but Company 1 may pay them a lot differently. Take this into consideration.

• Understand your responsibilities! – do you need to contact the new employees directly or will the buyer bridge this relationship initially? – Understand what you need to do when it comes to managing TUPE staff.

• Get Help! – in your tender response, if there are any questions on TUPE management, state how you’ll use a reputable and fully qualified legal service for support, advice and guidance to ensure full complicity against the regulations.

If you’re struggling with the mind field that can be TUPE regulations and require some support with your tender management approach, GET IN TOUCH TODAY! Our Tender Consultants are always here to help you understand, prepare and succeed!

How about discovering those all-important opportunities where TUPE may or may not apply? Our Tender Connect service, offers 10-industry-specific platforms providing you will both Public AND Private opportunities across your sector.