TUPE Transfers: What Contractors Need to Know When Moved Between Umbrella Companies
Contractors working through umbrella companies sometimes find themselves caught up in a situation they didn’t expect: being “TUPE’d” across to another umbrella.
TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations. It’s the legislation that protects employees’ rights when the business (or part of it) they work for is transferred to a new owner or operator. For contractors, this can come into play if your current umbrella company is sold, merges, or loses a contract and your employment is transferred to another umbrella.
What TUPE Means in Practice for Contractors
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Your employment contract transfers automatically: You don’t need to sign a new contract. Your existing rights, pay rate, holiday entitlement, and other terms move with you to the new umbrella.
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Continuous service is preserved: The length of your service carries over, which is important for things like redundancy rights.
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Pensions and benefits: While workplace pensions usually transfer, some benefits outside of core employment law may not.
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Consultation rights: You should be informed and consulted about the transfer. If major changes are planned, you have the right to be involved in that discussion.
In short, TUPE protects you from suddenly losing your job or having your terms downgraded just because your umbrella company changes hands.
The Catch: You Don’t Get a Choice
While TUPE is there to safeguard your rights, one thing it doesn’t give you is control over which umbrella company you end up with. You could be transferred to an umbrella you know nothing about—its service levels, compliance record, or how it treats contractors.
That can be unsettling. After all, your umbrella company is responsible for paying you correctly, handling your tax and National Insurance, and ensuring you stay compliant. Ending up with one you haven’t chosen means you’re putting trust in a business you didn’t pick.
Can You Refuse a TUPE Transfer?
Technically, yes—you can object. But if you do, your employment ends on the transfer date, and it’s usually treated as a resignation (without redundancy pay). That’s not ideal for most contractors.
The smarter option is often to take control before you’re TUPE’d somewhere you don’t want to be.
Taking Control: Choosing Your Own Umbrella
Instead of passively waiting to be moved, you can switch to an umbrella company of your own choice. That way you’re not left hoping the new one is reputable—you know it is.
At UmbrellaCompanies.org.uk, we’ve made this easier with our Top 10 Umbrella Companies list. It highlights providers who have strong reputations, compliance credentials, and solid feedback from contractors. If you’d prefer certainty over chance, it’s worth reviewing the list and making a move on your own terms.
