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Transfer of Undertakings (Protection of Employment) Regulations 1981 (“TUPE”)
The
Government has long been committed to the reform the Transfer of Undertakings
(Protection of Employment) Regulations 1981 – commonly known as the TUPE
Regulations. These Regulations safeguard employees’ rights when the business in
which they work changes hands between employers. The Government regards the
Regulations as a positive measure, with the potential to benefit employees and
employers alike, but recognises that they are operating less effectively than
they might do in their current form.
Preparations and preliminary steps toward the reform of the Regulations have
been in train for a number of years. Throughout that time, the DTI has engaged
in a process of thorough consultation (both formal and informal) with key
stakeholders. Specific policy proposals were put forward in a formal public
consultation document, and a supporting background paper, in September 2001. In
the light of the outcome of that exercise, and of further informal
consultations, the Secretary of State for Trade and Industry announced in
February 2003 the policy decisions the Government had taken.
These policy decisions were
carried forward in a further round of consultation in March 2005. This later
consultation exercise sought views as to whether or not the draft revised
regulations would correctly and effectively implement those policy decisions.
It was directed mainly at lawyers and other experts and specialists with a
detailed knowledge of the operation of the Regulations. consultation
document
 (233Kb)
The
intention was that, following this consultation exercise, the revised
Regulations would come into force on in October 2005. However as a result of
the large volume of responses to the Consultation Document and the many issues
that have been raised, the date for implementing the new Regulations has now
been rescheduled. They will be laid before Parliament in Autumn 2005, bringing
them into effect on 6 April 2006.
- a more
comprehensive coverage of “service provision changes” (i.e. contracting-out
and similar exercises involving business services) in order to achieve greater
certainty in practice for all parties concerned, reducing unnecessary disputes
and litigation and lowering transaction costs;
-
clarification of the effect of the Regulations in relation to the key issues
of transfer-related dismissals and changes to terms and conditions;
- the
introduction of a requirement on the old employer (transferor) to notify the
new employer (transferee) of the identities of the employees, and of all the
associated rights, liabilities etc, that will pass across in the transfer;
- greater
flexibility in the Regulations’ application in certain cases where the
transferor is insolvent, in line with the Government’s policy to promote the
“rescue culture”.
Other, more
minor and technical changes are described in detail in the main body of the
document.
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