When it comes to employment law in the United Kingdom, the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) plays a crucial role in safeguarding the rights of employees during various business transfers. But what about contractors? Are they protected by TUPE? Let`s take a closer look.
Firstly, it`s important to note that TUPE applies to employees, not contractors. This means that if a business transfer involves the transfer of employees, TUPE will apply and certain rights of those employees will be protected. However, if the transfer only involves contractors, TUPE will not apply.
So, what exactly is a contractor? A contractor is a self-employed individual or a company that provides services to a client for a fee. Unlike employees, contractors usually work on a project-by-project basis and have more control over when and how they work. They also do not have the same employment rights as employees, such as holiday pay, sick pay, and the right to claim unfair dismissal.
As TUPE does not cover contractors, their rights and obligations during a business transfer will depend on the terms of their contract. If the contract has a clause that allows the contractor to transfer to the new business owner, they may be able to continue working on the same project under the new ownership. However, if the contract does not allow for a transfer, the contractor may be left without work and would have to seek new clients.
It`s worth noting that even if a contractor is not covered by TUPE, they may still be entitled to certain rights under other employment laws. For example, if a contractor has been working for the same client for a certain period of time and can prove that they are, in fact, an employee (known as `employee by default`), they may be entitled to some employment rights.
In conclusion, TUPE does not cover contractors as they are not considered employees. However, their rights and obligations during a business transfer will depend on the terms of their contract. It`s important for contractors to carefully review their contracts to ensure they are protected during any business transfers they may be involved in.