It's increasingly common for companies to outsource and/or off-shore the non strategic components of non core operational activities such as Tele-Sales, Finance, IT and HR.

At the completion of contract terms, the contracts may be transferred to a new provider who, for whatever reason has been preferred over the original provider. The business activity in question, and the staff associated with it, then transfer with it to a new employer.

Similarly, as businesses and organisations evolve and new strategies emerge, some companies are now reversing earlier decisions and are in-sourcing previously outsourced functions. Once again the employees transfer with the contract - this time back to the original organisation

These initiatives will often require a great deal of organisational change and will often have a direct impact on significant numbers of staff. The Transfer of Undertakings Protection of Employment (TUPE) legislation has been designed to protect the employment rights of employees who, as a consequence of outsourcing (or in-sourcing) find that the jobs they undertake transfer from one employer to another.

There are a number of considerations that have to be made to determine whether any particular service or business transfer is covered by TUPE . Our consultants are well versed in these - but in practice the vast majority will be and unless it is demonstrated otherwise, it is far safer to assume in the context of any outsourcing or in-sourcing project, that TUPE will apply rather than the reverse. The penalties for getting this wrong can be significant and the only final test is at an Employment or Employment Appeals Tribunal, by which time if you get it wrong it will be too late.

Ultimately commercial decisions, supported by thorough due diligence on the part of both the potential outsourcer and the potential service provider will determine with any particular outsourcing (or in-sourcing) project will go ahead. We are able to provide all the HR Consultancy and Project Management services you may need as an outsourcer or service provider in order to make and implement such decisions and to ensure that the required organisational transformation is effective and that employees are fully engaged.

You can find out more about the Outsourcing Consultancy and Advice we provide by clicking here.

Examples of our work and Case Studies

1995 - Transfer of Electrical Retailing Business under TUPE

1999 - Qualified out the potential transfer-in of an IT Services operation due to excessive risks associated with pension costs

2000 - Transfer-in of IT SAP Consulting business.

2003 - Integration of Consulting teams and remuneration schemes following merger of IT companies

2004 - Transfer-in of IT Services Operation supporting a major Insurance company

2006 - Transfer-in of sales force to newly created French subsidiary of a UK manufacturing business

2007 - Managed the TUPE transfer-in of Chauffeuring team following the re-assignment of a contract of service by a major international Media and Information company

2008 - Advised a major Property Services Company on the development of their strategy for Outsourcing IT Services and managing the TUPE issues within a context of multiple previous acquisitions and transfers

2009 - Advised a top University on the development of their strategy for in-sourcing previously out-sourced IT Services and for managing the TUPE implications