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TUPE Regulation Changes

With new regulations coming into force in January 2014 do you know how they could affect your business?

A TUPE is the Transfer of Undertakings (Protection of Employment) Regulations 2006, it is used to protect employees whose business is being transferred to another business. The aim of the regulations is to ensure that employees are not dismissed before or after the transfer, to make sure that terms and conditions of their contracts are not worsened before or after the transfer and that employees are kept informed throughout the process.

The recent changes came in to force on 31st January 2014 and will not apply to any transfers that took place before or on the 30th January 2014.

The new regulation states that the activities carried out after the change must be fundamentally the same as those carried out by the person who has ceased to carry them out before the transfer.

 There will be amendments to the provisions which give protection against dismissal and restrict changes to contracts.  There will also be a protection in place with regards to changes in location of place of work and this will not necessarily lead to automatic unfair dismissal.

There will be a provision allowing micro businesses to inform and consult employees directly when there are no existing appropriate representatives. 

The deadline of when an employer must supply the employee liability information to the new employer has increased from less than 14 days to not less than 28 days before the transfer.

Other changes:

  • It will be possible to change terms derived from collective agreements one year after the transfer, however the change cannot be less favourable to the employee
  • Consultation that begins before the transfer can count for the purpose of complying with the collective redundancy rules, providing that this is agreed between the transferor and the transferee.
  • Where the transferee is proposing 20 more or redundancies after the transfer, collective redundancy consultation that takes place before the transfer will, in some circumstances, count for the purposes of the rules on collective redundancy consultation.
  • An employee will be automatically unfairly dismissed if the sole or principal reason for the

Dismissal is the transfer.

  • Redundancy consultation can begin before the transfer if both employers are in agreement.
  • Businesses with fewer than 10 employees are not required to invite the election of representatives for consultation purposes if no existing arrangements are in place.
  • Rights of employee representatives:  An elected representative has the right to reasonable time off with pay during normal working hours. The transferor must also allow them access to the affected employees and provide accommodation and facilities if necessary.

Park City is highly experienced in the TUPE process having successfully helped many companies complete the process. Find out how we can help save you the worry and burden of dealing with the complicated regulations that surround TUPE projects – 01206 752100

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