Government plans to repeal key parts of TUPE
18 January 2013
The Department for Business, Innovation & Skills confirmed yesterday that it proposes to make fundamental changes to the TUPE Regulations as follows:
- Repealing entirely the ‘service change’ provisions, (affecting outsourcing, retendering and bringing work back in house’) to align the definition of a transfer with the wording of European law.
- Repealing the requirement to provide employee liability information but making it clear that the transferor should disclose information to the transferee where it is necessary for either business to comply with their information and consultation obligations with staff.
- Changing the wording of provisions restricting changes to contracts; giving protection against dismissal and relating to a substantial change in working conditions of the employee to more closely reflect European law and case law.
- Amending the provisions relating to economic, technical or organisational reasons (by which employers are potentially allowed to dismiss or agree changes to contracts) to include changes in the location in of the workforce allowing closer alignment with redundancy dismissal law.
- Providing that the transferee business can consult on collective redundancies with the transferring employees ahead of the transfer as part of their collective consultation obligations.
- Allowing businesses with fewer than 10 employees to inform and consult with their employees directly regarding transfers (rather than through representatives) in cases where there is no existing Union or representatives
The Government is also asking whether
- Protection of terms derives from collective agreements should be limited to one year, after which transferees would be able to make changes
- Whether a transferor should be able to rely on a transferees economic, technical or organisational reason for changes in the workforce as a reason for pre transfer dismissals of employees.
The consultation closes on 11 April 2013.
Compensatory award to be capped at 12 months pay.
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