BIS (the Government Department for Business, Innovation & Skills) has recently announced that it proposes to make fundamental changes to the TUPE 2006 Regulations.
The key proposals include:
Repealing entirely the ‘service change’ provisions, (affecting outsourcing, retendering and bringing work back in house’) to align the definition of a transfer with the wording of European law.
Repealing the requirement to provide employee liability information but making it clear that the transferor should disclose information to the transferee where it is necessary for either party to comply with their obligations to inform and consult staff.
Amending the provisions which restrict changes to contracts; give protection against dismissal and permit the right to resign in response to a substantial change in working conditions of the employee, to more closely reflect European law and case law.
Amending the provisions relating to economic, technical or organisational reasons (by which employers are potentially allowed to dismiss or agree changes to contracts) to include changes in the location of the workforce, allowing closer alignment with redundancy dismissal law.
Providing that the transferee business can consult on collective redundancies with the transferring employees ahead of the transfer as part of their collective consultation obligations.
Allowing businesses with fewer than 10 employees (micro businesses) to inform and consult with their employees directly regarding the transfer (rather than through employee representatives) in cases where there is no existing Union or representatives
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