December 19, 2013

How the new TUPE Regulations will affect YOU

Are you prepared for the important TUPE Regulations coming into force next month?

The Government believes the existing Transfer of Undertakings (Protection of Employment) (TUPE) Regulations are too complex and are changing them. It has now published what will be changing – which could be an unwelcome surprise to businesses  not aware of the new legalisation.

That’s why we’re here to help with an update of what is changing, and just as importantly, what’s staying the same…

Main amendments:

• Allow renegotiation of terms agreed from collective agreements one year after transfer, provided any changes are no less favourable to employees.

• The location of a workforce can be within the scope of an economic, technical or organisational reason entailing changes in the workforce, thus preventing genuine place of work redundancies from being automatically unfair

• Clarify that for there to be a TUPE service provision change, the service provision must be “fundamentally or essentially the same” as before the transfer

• Allowing microbusinesses to inform and consult directly with employees

• (In some circumstances) allowing TUPE consultation to satisfy collective redundancy consultation rules.

Importantly, the Government is NOT:

• Removing ‘service provision change’ from what amounts to a TUPE transfer.

• Removing the transferor’s obligation to provide employee liability information; rather, the time for providing such information is increased to 28 days.

The consultation response does not include the new draft Regulations or an expected implementation date (although the Department for Business Innovation and Skills has informally suggested the implementation date will be January 2014).

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