Call for evidence on TUPE
The Government has launched a call for evidence on the Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246) (TUPE). It seeks to determine whether or not there is scope to improve implementation of the Acquired Rights Directive (2001/23/EC) and reduce burdens on businesses, while continuing to protect employees.
The Government acknowledges that some businesses are concerned that the Regulations are "gold plated" and too bureaucratic. The issues on which the Government seeks views include:
- whether or not the Regulations provide greater clarity on the law applying to transfers of undertakings;
- whether or not the inclusion of service provision changes within the Regulations provides greater transparency and reduces the burdens on businesses, and whether or not professional services firms should be covered by the Regulations;
- whether or not the lack of provision for post-transfer harmonisation of terms and conditions is a significant burden on employers;
- whether or not the Government should provide greater clarity on how TUPE applies to insolvency situations;
- whether or not the Government should provide more guidance for businesses on TUPE, for example on the concept of economic, technical or organisational reasons entailing changes in the workforce;
- what problems employers have encountered when implementing the Acquired Rights Directive in other member states; and
- what problems employers have encountered arising from the interaction between TUPE and other areas of employment law.
The call for evidence was launched by Vince Cable, Secretary of State for Business, Innovation and Skills (BIS) on 23 November 2011, when he announced a package of proposals to reform employment law. The call for evidence is open until 31 January 2012. If the evidence calls for changes to the Regulations, the Government will issue a formal consultation on proposed changes in 2012.
- Call for evidence: Effectiveness of Transfer of Undertakings (Protection of Employment Regulations) 2006 (PDF format, 191K) Read the call for evidence and download the response form on the BIS website.
- Reforming employment relations View Vince Cable's speech in full on the BIS website.
Government announces "the most radical reform to the employment law system for decades" XpertHR summarises the Government's response to the consultation on resolving workplace disputes.
Transfer of undertakings The XpertHR employment law manual provides up-to-date guidance on TUPE.
The XpertHR how to guide on harmonising terms and conditions following the acquisition of a business explains the step-by-step process of managing change following acquisitions and mergers, which needs to be handled with care from the legal and HR point of view.