Changes to the TUPE regulations start taking effect from 31 January 2014. These changes are largely good news for employers and are:
- For service provision changes the service provision must be “fundamentally or essentially the same” before and after the transfer
- Transferees can elect to collectively consult with transferring employees regarding redundancies before the transfer provided the transferor agrees. This will count towards the 30 or 45 day collective redundancy consultation period and will allow the transferee to finalise dismissals shortly after the transfer.
- An employee’s right to claim automatically unfair dismissal is limited to situations where the transfer is the reason for the dismissal. Under the current regime a dismissal will be automatically unfair if the reason for dismissal is the transfer itself or a reason connected with the transfer.
- Post-transfer changes to location can amount to an “economic, technical or organisational reason entailing changes in the workforce” (an ETO reason) so that redundancies due to a simple change of location will not be automatically unfair.
- The prohibition on contractual changes following a TUPE transfer will be limited to situations where the transfer is the reason for the change. Currently changes to contractual terms are not permitted if the reason for the change is the transfer itself or a reason connected with the transfer. In addition, contractual changes will be permitted where the change is permitted by the terms of the contract.
- Contractual terms which derive from a collective agreement can be varied provided the variation takes effect at least one year after the transfer date and the employee’s terms “when considered together” are no less favourable following the variation.
- Where a transferee inherits contractual terms which derive from a collective agreement, the transferee will not be bound by terms and conditions negotiated in future through collective bargaining arrangements to which they are not a party.
- The transferor must provide employee liability information regarding the transferring employees at least 28 days before the transfer (this was previously 14 days). This change applies to transfers which take place 3 months after the changes come into force (ie at the end of April 2014).
- Micro businesses with fewer than 10 employees may directly consult affected employees in cases where there are no existing appropriate representatives. This change applies to transfers which take place 6 months after the changes come into force (ie at the end of July 2014).
To discuss these changes or any other employment law issue get in touch at contact@integralegal.co.uk or 0115 987 6790