Changes to TUPE coming into force on 31 January 2014

After a lengthy consultation process the government has announced that the implementation of the The Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2013 will take effect as of 31 January 2014.

The main changes to the TUPE regulations are as follows :-

  • they allow renegotiation of terms agreed from collective agreements one year after transfer, provided any changes are no less favourable to employees
  • the location of a workforce can be within the scope of an economic, technical or organisational reason entailing changes in the workforce, thus preventing genuine place of work redundancies from being automatically unfair
  • clarify that for there to be a TUPE service provision change, the service provision must be “fundamentally or essentially the same” as before the transfer
  • allowing microbusinesses to inform and consult directly with employees
  • (in some circumstances) allowing TUPE consultation to satisfy collective redundancy consultation rules.

Importantly, the regulations do not:-

  • remove ‘service provision change’ from what amounts to a TUPE transfer
  • remove the transferor’s obligation to provide employee liability information; however the time for providing this information will be increased to 28 days.

The regulations will apply to any transactions/service provision changes which complete after the regulations come into force, as such you should have them in mind if you are already in the planning stages. The draft regulations are available here: http://goo.gl/H34CDP

For more information please contact Stephen Stewart on 01283 526200 or email Stephen.Stewart@elselaw.co.uk

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