TUPE and workers: where do they stand?
It isn’t always clear whether someone is an employee, a worker or genuinely self-employed. Cases involving Uber, Pimlico Plumbers and Deliveroo have shown how much turns on that label. It matters in a business sale or outsourcing too, because TUPE (the Transfer of Undertakings (Protection of Employment) Regulations 2006) protects people when the business they work for changes hands.
In this blog, our employment lawyers look at where workers stand when a business transfers to new ownership.
Dewhurst and others v Revisecatch Ltd t/a: TUPE protection extends to workers as well as employees
In Dewhurst and others v Revisecatch Ltd t/a Ecourier and CitySprint (UK) Ltd (2019), an employment tribunal found that ‘workers’, as well as ‘employees’, may be able to transfer under TUPE.
Three bike couriers (led by Ms Dewhurst) who worked for CitySprint argued they should have been told about and consulted on a TUPE transfer when the courier company’s services were taken over by Revisecatch Ltd (t/a Ecourier). They claimed that liability for outstanding holiday pay transferred to Revisecatch under TUPE and that both companies failed to inform them properly of the business transfer.
TUPE defines employees as those who work under a contract of employment, and workers as those who are not engaged under an employment contract. In this case, the employment tribunal noted that, under the Acquired Rights Directive (ARD), an ‘employment relationship’ is protected, including transfer of rights and obligations.
The tribunal stated that TUPE protects ‘limb (b) workers’ as well as employees. Limb (b) workers are people who personally carry out work for someone who is not their client or customer, but who don’t have a full employment contract.
The ruling created uncertainty amongst workers about how far TUPE reaches.
Where does the law stand now?
Unfortunately, we aren’t much closer to clarification on where workers stand. In 2024, the Government consulted on amending TUPE to make clear that it doesn’t cover workers, but nothing came from it.
Two years later, in April 2026, the Government launched a consultation on how TUPE works in practice. This closed in July 2026 and, so far, no changes have been made.
What does this mean for employers?
Until the law is clarified, employers should not assume that workers fall outside TUPE.
The most significant consideration is in relation to compliance with TUPE’s collective information and consultation obligations.
The transferor is obliged to provide specified information about the transfer to representatives of the affected employees, including dismissals or contract changes. If you have individuals who might be classed as workers, such as zero-hour or casual workers, it is safest to consider them in any transfer, including consulting them per the process.
Failure to comply with TUPE’s consultation process can result in a penalty of up to 13 weeks’ pay per employee, or indeed worker.
Genuinely self-employed people, i.e. those who are in a business of their own, are unlikely to be covered by TUPE.
What about unfair dismissal rights for workers?
The Dewhurst decision did not give workers unfair dismissal rights, and eligibility requirements for unfair dismissal claims remain unaffected. Only those who are classified as ‘traditional’ employees under an employment contract can bring unfair dismissal claims.
On the topic of unfair dismissal claims, from 1st January 2027 the required continuous service for ordinary unfair dismissal protection drops from two years to six months. Existing employees with six or more months of service on 1st January 2027 gain this protection immediately.
Need advice on TUPE?
If you have questions about TUPE, employment contracts or any other area of employment law, our solicitors are here to help. To speak to our specialist employment lawyers, call us on 0117 325 2929 or complete our online enquiry form.
