TUPE consultation response published by the Government
The Government has today published its response to its consultation on proposed changes to the Transfer of Undertakings Regulations 2006, commonly known as TUPE.
Referring to "the strength of submissions" made, the Government has decided not to repeal the provisions relating to service provision changes, nor to allow a transferor to rely on a transferee’s economic, technical or organisational reasons as grounds for
dismissing an employee prior to a transfer. It has also decided to retain the requirement for employee liability information to be given by the transferor to the transferee (but see below regarding extending the time for this).
The Government has said it will make a number of changes, including:
• allowing re-negotiation of employment terms derived from collective agreements to take place one year after the transfer, provided that overall the changed terms are no less favourable to the employee than what was in place before
• changes in the location of the workforce following a transfer can amount to economic, technical or organisational reasons entailing changes in the workforce, therefore preventing genuine place of work redundancies from being automatically unfair
• for there to be a TUPE service provision change, the activities carried on after the change in service provision must be "fundamentally or essentially the same" as those carried on before it
• consultation which begins pre-transfer can count for the purposes of complying with the collective redundancy consultation rules
• micro-businesses will be allowed to inform and consult directly with affected employees when there is no recognised independent trade union nor any existing appropriate employee representatives in place
• the amended TUPE regulations will extend the time before the transfer when employee liability information must be given to the transferee to 28 days
According to the Government response, a bill is intended to be laid before Parliament in December 2013 in order to make these amendments to TUPE. The Government has informally suggested that the implementation date for the changes will be January 2014.
Businesses will clearly need to take legal advice on what the changes mean for them if they are going to be involved in a TUPE transfer during 2014.
Download the full response document here:
GOVERNMENT RESPONSE TO THE CONSULTATION
ON THE TRANSFER OF UNDERTAKINGS (PROTECTION OF EMPLOYMENT) REGULATIONS 2006 (TUPE)
For more information about any of the above or for practical advice on this or any other aspect of employment law, please contact Nigel Crebbin of the Berg Employment Team on 0161 833 9211 or email us at firstname.lastname@example.org.
(The information and opinions contained in this news alert are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Berg or any of its partners or employees. Professional legal advice
should be obtained before taking, or refraining from taking, any action as a result of this news alert.)