TUPE liability estimator

A tool that projects the total UK employment cost a buyer inherits under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) when they acquire a business — including auto-transferring accrued holiday, pension arrears, notice pay and redundancy exposure. Sell Ltd's estimator also splits out what Reg 8(6) leaves with the Redundancy Payments Service (RPS) when the seller is in insolvency.

Every employment contract 'assigned to the transferring organised grouping of resources' — including terms, service length, unpaid wages, holiday accrual, pension contributions (subject to reg 10) and any live disciplinary/grievance/tribunal claim. Terms cannot be changed for a reason connected to the transfer under reg 4(4).

In insolvency (administration, CVL), certain 'relevant employee liabilities' do NOT transfer under reg 8(6) and (7). Instead they're paid by the state's Redundancy Payments Service up to statutory caps: 8 weeks' arrears of pay, 6 weeks' holiday, statutory notice pay and basic redundancy at £719/week (2026 cap). Amounts above the cap stay with the old company and rarely recover.

Yes. Sch B1 IA 1986 administration triggers Reg 8(6) whether the sale is pre-pack (day 1) or marketed. The distinction matters for creditor recovery, not TUPE. Case law (OTG v Barke [2011] IRLR 272) confirms administration is 'insolvency proceedings not with a view to liquidation' — so Reg 8(6), not the harsher Reg 8(7), applies.

In 2026 the weekly cap is £719 and the maximum statutory redundancy payment is £21,570 (30 weeks). Full weekly-wage recovery caps also at £719. Anything above the cap — high earners, long-serving directors, private pension arrears — is not recovered from the state and must be either absorbed by the buyer or crystallised as an unsecured claim.

Only for an 'economic, technical or organisational reason entailing changes in the workforce' (ETO). Post-2014 amendments allow harmonisation after transfer provided the change is not because of the transfer itself. Practical: expect a 12-month cooling-off period before terms can be safely varied — Chris advises 18 months for anything unfavourable to employees.

Failure-to-inform-and-consult claims under reg 15. If the seller (or administrator) does not give employee representatives 'appropriate information' 'long enough before the transfer to allow consultation', a tribunal can award up to 13 weeks' pay per affected employee. This liability transfers jointly and severally to the buyer under reg 15(9).

Insist the administrator provides evidence of the reg 13 notice served, or negotiates a specific indemnity carved out of the sale proceeds. Cost the worst-case claim (13 × avg weekly wage × headcount) into your offer. Deal-speed insurers (Aon, Marsh, Miller) will underwrite reg 15 risk on distressed deals at 1–2% of exposure.

Yes — any 'employee' assigned to the transferring undertaking, regardless of hours. Casual workers who are truly self-employed do not transfer, but tribunals apply the Autoclenz test (2011) to strip labels. Zero-hours contracts with regular working patterns are almost always employees for TUPE purposes.

Occupational pension rights other than 'old-age, invalidity or survivors' benefits' transfer under reg 10. Arrears of employer contributions to a defined-contribution scheme do transfer. Defined-benefit past service does not transfer — but the Pensions Act 2004 s.257–258 requires the buyer to offer at least a matched-contribution DC scheme going forward. Pension arrears above RPS caps are unrecoverable.

No. Pre-transfer dismissal 'by reason of the transfer' is automatically unfair under reg 7 and the dismissal + claim transfers to you (Litster v Forth Dry Dock [1990]). The Insolvency Service and case law (Spaceright Europe v Baillavoine [2011]) allow post-transfer redundancy for an ETO reason — but only genuine restructuring justifies it.

Statutory caps refresh every 6 April. 2026 figures used: £719 weekly cap, £21,570 max redundancy, £6.40 statutory sick pay. Sell Ltd refreshes the estimator every April and October following government updates published on GOV.UK.