The government intends to simplify the Transfer of Undertakings Protection of Employment (Regulations 2006) TUPE to benefit business in the UK and has launched its formal proposals.
At present one of the most litigated areas of TUPE in Tribunals, and one of the areas causing the most difficulty for businesses, is service provision changes. The current law captures a very wide range of changing contract functions and in sourcing and outsourcing. The government is considering repealing the provision which includes most of these types of changes within the scope of the regulations.
There are also strict requirements relating to the notification of employee liability information on a transferor of a business. The government is considering repealing those specific requirements in favour of a more general obligation limited to necessary information.
Currently TUPE is gold plated compared to the Acquired Rights Directive so far as changes to contracts following a transfer is concerned. The government plans to change the protection against dismissal aspects of the Regulations; again so that they more closely reflect the narrow wording of the directive and the ability to change working conditions following a transfer of business.
Another area which causes much Tribunal litigation relates to the duty to inform and consult representatives. The government proposes to amend the Regulations to ease the burden on the transferor.
The current Regulations are often tricky in practice, particularly for small businesses, to comply with so far as the consultation with employee representatives is concerned. The government is considering allowing micro businesses to inform and consult employees directly regarding transfers rather than through representatives in cases where there is neither a recognised union, nor existing representatives
The government is seeking views on whether it is desirable to limit the future applicability of terms and conditions derived from collective agreements to 1 year from the transfer and whether a transferor should be able to rely upon the transferees economic, technical or organisational reason entailing changes in the workforce in respect of pre transfer dismissals.
The TUPE regulations have caused considerable practical difficulties for businesses for many years and any carefully considered amendments are much to be welcomed.
For information or specific advice on TUPE regulations or any other area of employment law, please contact Holly Dobson on 0114 266 6660, alternatively email [email protected].
