TUPE Changes Come Into Force Today
Back in October, the government published new draft TUPE regulations in response to a consultation they carried out to reform the TUPE process.
Since then, the draft legislation has been revised to make it more flexible and effective.
However, it does seem the legislation has now been watered down somewhat.
With several key proposals dropped, on 31 January 2014, the catchily titled ‘The Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2014 (SI 2014/16) (2014 amendment regulations)’ will come into force.
These rules in turn amend the Transfer of Undertaking (Protection of Employment) Regulations 2006 ( ‘TUPE regulations) and Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA) and I have briefly summarised the changes to help you understand how this may affect you, your business or any business you purchase or any service you take over from another provider.
TUPE Legislation Changes in summary
- Service Provision Changes
The position on TUPE service provision changes is clarified. Activities after the service provision change must be “fundamentally or essentially the same” as those carried on before it.
- Employee Liability Information Timescales
Employee liability information must now be provided 28 days before the transfer. This is effective from 01 May 2014 not 31 January 2014.
- Collective Agreement Transfer Terms
There will be a static approach to transfer terms taken from collective agreements. Transferees will be able to alter terms taken from collective arrangements one year after a transfer has taken place, as long as the overall change is not less favourable to the employee.
- Regulation 4 and 7 Amendments
Regulations 4 and 7 relating to restriction on changes to terms and protection against dismissal will more closely reflect ECJ and ARD case law wording.Regulation 4 (9) will remain unaltered. This means employees can claim they have been dismissed when there is a substantial change in working conditions to their material detriment.
- Workforce Location
Workforce location changes following transfer will be included within the scope of an economic, technical or organisational reason involving workforce changes (ETO). This will prevent genuine workplace location redundancies from being automatically unfair.
- Pre-Transfer Consultations
TULRCA will clarify that pre-transfer consultation can be relied upon for collective redundancy rules compliance. This is on the basis of agreement between the transferor and transferee and the transferee carried out a meaningful consultation.
- Micro-Business Employee Consultations
Applicable from 31 July 2014, micro-businesses will be allowed to directly inform and consult with employees when there is no recognised independent union or other appropriate representatives.
- Government TUPE Guidance
The government will improve their guidance on TUPE.
If your business is likely to be affected by TUPE in any way, we can provide tailored advice on how you can effectively manage the TUPE process, while complying with all relevant rules and legislation.
For further advice, please contact our Employment Law Team
Amy Hallam
Head of Employment
0114 3496989
amy.hallam@brmlaw.co.uk
If a business your are selling or purchasing will be affected by TUPE, our Company Commercial Team are here to guide you through the process. Please contact Sarah Rowland on 01246 564039.
