What is TUPE?
​When does TUPE apply?
​How to manage a TUPE transfer
​How PayFit can support with your TUPE transfer
​How to process TUPE in PayFit
​Onboarding with PayFit and TUPE employees
​FAQs
​

TUPE or Transfer of Undertakings (Protection of Employment) is the process where:

TUPE applies in 2 cases:

Where all or part of a business moves from one employer to another including 2 or more businesses merging)

Where a contract for a service provided changes hands. Either from an in-house provider to a contractor or one contractor relationship ends and the service is given to another or work is transferred from a contractor to in-house.

TUPE transfers constitute a contractual change of employment for an employee, one that retains a lot of employees’ previous contractual arrangements. In addition to transfers, TUPE can also lead to redundancy so it is recommended that you liaise with a legal representative or a party such as ACAS to ensure a smooth transition for employees.

If you need to complete a TUPE process and you’re happy to manage the migration yourself, we can set up your new account free of charge. If you require further support in transferring your employees, you must let us know before the first day of the month prior to the transfer.

If you're on our premium plan, there is no charge for our support. If you're on our light or standard plan, we charge a one-off fee of £50 or £3 per employee, whichever is higher.

Process the employee as a leaver, with the leave date as the day before they commence employment in the new entity. More information on contract terminations can be found in this article.

🚀 You do not need to make payment for unused annual leave as it is the responsibility of the new employer to give the employee the opportunity to use this before the end of the leave year.

If you are transferring all employees and will no longer be operating a PAYE scheme under this entity, please follow this article on what to do if the PAYE scheme is ceasing.

1. Add the employee as a new starter, with the day after the leave date in the old entity as the new start date and add all relevant new starter and contractual information.

2. In the Previous employment section of PayFit, input their previous pay and tax figures from the previous entity (you can find this on their final payslip or a custom report).

🚀Do not enter their previous pay and tax figures as year to date figures in this employment

3. Active the TUPE toggle

4. Enter the employee’s pre-transfer start date which is their start date at the entity they have transferred from

If you are onboarding with PayFit and your payroll contains employees that have been added to your payroll due to TUPE, when onboarding you should:

1. Add the employee as a new starter, with the day after the leave date in the old entity as their start date and add all relevant new starter and contractual information.

🚀Don’t worry, you can add their continuous service date at a later date 🚀

2. In the Previous employment section of PayFit, input their previous pay and tax figures from the P45

Do not enter their previous pay and tax figures as year to date figures in this employment

3. Active the TUPE toggle

4. Enter the employee’s pre-transfer start date which is their start date at the entity they have transferred from

Do I need to provide P45s to employees?

No. TUPE employees do not receive their P45s. Instead, the new employing entity uses them to correctly calculate the employee’s tax due like they would a new starter but the employee does not get a copy.

What happens to an employee’s pension in a TUPE transfer?

Automatic enrolment is not protected under a TUPE transfer which means that the employee may not continue to contribute to the same scheme. Instead the employer should (if they operate a different scheme) enrol eligible employees into the pension scheme used by the new entity

What happens to employee annual leave?

Annual leave entitlement is protected under TUPE transfers so when setting up the employee in PayFit, the employee should receive the annual leave they were previously entitled to.