When does TUPE apply?

pleasedelete

We are a small company that has provided specialist services to a large public sector organisation since 2010. The amount of days has been agreed annually. 
We have now been advised that they intend to take 70% of the work that we have previously done in house and employ new staff to complete the work and offer our company a reduced contract for 2020/21. 

Any thoughts on this? 

lincroft1710

TUPE applies to employees who worked for Company A, but now work for Company B as A were taken over by/lost the contract to/merged with/or their department split off to form -  B

Sandtree

How is your question related to TUPE? 

The legislation only applies when contractually employees move with the undertaking. You mention you are losing work but don't mention anything about your employees moving across as a consequence. It sounds more like you may make some of your staff redundant and it is possible some of them will find future employment with the Local Authority (assuming thats what you mean by LA rather than Loss Adjusters as it would be in my world). That is purely a coincidence and not by design and so nothing to do with TUPE.