Usually yes if you're buying the business's assets, and usually not if you're buying its shares. TUPE protects employees when the business they work in changes hands.
Asset purchase: TUPE usually applies
- Staff transfer to you automatically, on their existing terms and with their length of service.
- Their employment history comes with them, including holiday, pay and any outstanding claims.
- Dismissing someone because of the transfer is likely to be automatically unfair.
- The seller must give you information about the staff at least 4 weeks before the transfer.
Share purchase: TUPE usually doesn't apply
The employer stays the same company, so staff carry on as before. Their contracts and history still stay with the company you're buying.
Costs to price in
Staff costs, accrued holiday, any pay or pension commitments, and the cost of any changes you plan. Your lender will want to see these reflected in the plan.
Get advice
Employment law is detailed. Speak to your solicitor before agreeing the deal.
Last reviewed: 8 October 2026