Establish the transfer route before issuing new contracts
Assess TUPE applicability to the actual transaction. Where it applies, terms, holiday entitlement and continuous service can pass to the new employer. Record accrued rights and liabilities; do not default to asking employees to resign.
Plan consultation and explain the employee impact
Identify the representatives or direct-consultation route that applies before the transfer. Explain the proposed date, reasons, effect on employees and any measures. Separately compare pension and benefit arrangements; protected pension rights do not mean the future pension must be identical.
Review contractor status for tax and employment rights
Use the actual working arrangement to assess status. HMRC's CEST tool addresses tax status; employment-law status must also be considered. Keep the assessment evidence and treat any historic exposure separately from the proposed employee start date.
Agree the PAYE handover with both payroll teams
Confirm whether employer references stay the same, change or form a succession. Map final and first submissions, year-to-date figures and benefit reporting to HMRC's applicable process. A payroll transfer is not proof of employment-law continuity.
Check sponsorship before fixing the cutover date
Identify sponsored employees and check the employer-change route for their visa. The general Skilled Worker guidance requires an update for a different employer; determine whether any specific transfer provisions apply to the case before deciding when work can start.
Map the employing entity and intermediary chain
Get the legal employer's name, the client contract and PAYE responsibilities in writing. Check whether employment-intermediary rules apply to the proposed EOR or PEO-labelled service and which party performs each obligation.
Where PEO fits
If a proposal uses the term PEO, ask who signs the employment contract and who operates PAYE. The commercial label does not answer the UK employment-intermediary questions.
Common questions
Does TUPE apply to every change of EOR provider?
Do not assume it does. Assess the actual transaction first. Where TUPE applies, employment terms, holiday entitlement and continuous service can pass to the new employer; record accrued rights and liabilities before issuing new contracts.
Does a PAYE transfer prove employment continuity?
No. The PAYE process and employment-law transfer need separate checks. Agree whether employer references stay the same, change or form a succession, then allocate final and first submissions and year-to-date figures.
Can we set the cutover date before checking sponsored employees?
Check the employer-change route first. The general Skilled Worker guidance requires an update for a different employer; assess any specific transfer provisions before deciding when work with the receiving employer can start.
Turn these checks into a plan
Record an owner, required evidence and readiness date for each issue. Confirm the rules for the actual employing relationship and work location before promising a cutover.
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