CLM Solicitors - News - TUPE 2006 Makeover

TUPE 2006 Makeover

Andrew Egan

Andrew Egan, an employment lawyer with solicitors, Charles Lucas & Marshall reviews new legislation which affects the rights of employees who work for a business which is transferred to a new owner.

The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE 2006) came into force on 6th April 2006. TUPE 2006 will entirely replace the current TUPE 1981 which introduced protection for the rights of employees on the transfer of an undertaking.

Employers need to keep to date with the changes as it could be very costly if they fail to observe the new laws - and want to avoid getting a bad reputation for not protecting their employees on transfer.

How do the TUPE Regulations affect your business on transfer? The main changes are:

A widening of the scope of the Regulations to cover cases where services are outsourced, ‘in sourced’ or assigned by a client to new contractor (‘service provision changes’).
Establishing a new duty on the transferor to provide the transferee certain information in advance of the transfer about the ‘rights, powers, duties and liabilities’ under the Contracts of Employment of transferring employees. This will include information such as identity and age of all transferring employees and details contained in their employment particulars.
Introducing new Regulations regarding the situation where on transfer, the transferor employer is subject to insolvency proceedings. These attempt to make it easier to transfer insolvent businesses to new employers.
Although new Regulations establish the basic rule that Contracts will continue in the same way under the transferee as they had operated under the transferor, contracts may be lawfully varied for a reason connected with the transfer ‘entailing changes in the workforce’, when the reason for the variation is an ‘economic, technical or organisational’ reason.
Clarifying when it is unfair for employers to dismiss employees for reasons connected with a transfer.
Making the transferor and transferee jointly and severally liable for any failure to inform and consult transferring employees. Therefore, the wise are advised to seek specific indemnities to clarify exactly who will be responsible for paying any compensation in the event of breach.

In conclusion, TUPE remains TUPE and while the new regulations may clear up some old areas of discussion, there doubtless will remain plenty about which to argue.

For more information contact Andrew Egan on 01793 511055 or andrew.egan@clmlaw.co.uk

RETURN TO MAIN NEWS PAGE

RETURN TO HOME PAGE