collective agreements 6. Effect of relevant transfer on trade union recognition 7. Dismissal of employee because of relevant transfer states that employees will be considered dismissed unfairly, if they are dismissed without the employer showing an economic, technical or organisational reason for dismissal. What is certainly not included in this concept is dismissals simply to improve the price of the company before its sale. where there is an economic, technical or organisational reason for dismissals, these are considered 'substantial reasons' (i.e. justified reasons) under the fair dismissal provisions of the Employment Rights Act 1996 (s.98(2)(c)). The result for the employee is that he is considered redundant, and thereby should receive a compensation payment if they have been an employee for more than two years under s.135 ERA 1996. importantly, an employee dismissed by the seller of the business is deemed to have been dismissed by the purchaser too. This means an unfair dismissal claim can be brought against either party. 8. Insolvency 9. Variations of contract where transferors are subject to relevant insolvency proceedings 10. Pensions 11. Notification of Employee Liability Information 12. Remedy for failure to notify employee liability information 13. Duty to inform and consult representatives 14. Election of employee representatives 15. Failure to inform or consult 16. Failure to inform or consult, supplemental 17. Employers' Liability Compulsory Insurance 18. Restriction on contracting out Example Imagine a company that has in-house cleaners. The company decides that they want to tender-out the contract for cleaning services. The new company that takes over the work may employ the same cleaners. If it does so, TUPE will make it likely that the new employer will have to employ the cleaners subject to the same terms and conditions as they had under the original employer, although future recruits may be appointed on different terms and conditions. If any staff are dismissed by either employer for a reason connected with the new arrangement this will automatically be deemed an unfair dismissal and the new employer will be liable for any statutory claims arising as a result. This is also the case where a target business (as distinct from shares in a company) is bought from company A by company B (often much larger) and integrated with the business of company B. Evaluation The benefits to individual workers are clear; TUPE prevents the possibility of everybody in the firm losing their jobs, just because