The Government has announced that changes to the TUPE regulations originally intended for October this year are now likely to come into force in January 2014 instead.
A spokesperson for the Department for Business, Innovation and Skills (BIS) said that the Government will publish its responses to the consultation on proposed changes to the Transfer of Undertakings (Protection of Employment) Regulations, known universally as TUPE, early next month.
The spokesperson added that the BIS is still finalising the timescale for the TUPE changes but that it plans to put the draft regulation before Parliament in December this year, so that they come into force the month after.
The purpose of TUPE is to protect employees if the business in which they are employed changes hands. Its effect is to move employees and any liabilities associated with them from the old employer to the new employer by operation of law.
The consultation included the proposal to remove the provisions on service provision changes, for example outsourcing, as well as one to repeal the requirement for the transferor to provide employee liability information and limiting the future applicability of terms and conditions derived from collective agreements to one year from transfer.
These are very significant proposals, which, if implemented, would create a much more “light touch” approach to TUPE. They would also undo many of the changes made six years ago when the regulations were last overhauled
The BIS said that the proposed changes to the TUPE Regulations were made in a bid to improve and simplify the Regulations for all parties involved and following a call for evidence in November 2011 on the effectiveness of TUPE.
Written by Nigel Rowley Managing Partner and Head of Litigation and Dispute Resolution, at Mackrell Turner Garrett
Mackrell Turner Garrett Solicitors in London
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