Revised Tupe Legislation Comes Into Force

Changes to the process of transferring business ownership have come into force, aimed at making it fairer and more effective for firms and employees. Amendments to the Transfer of Undertakings (Protection of Employment) Regulations (Tupe) are designed to ensure employers and staff are treated fairly when a business enters new ownership. Speak to an employment law solicitor for advice on how to meet the new requirements.

Terms ‘up for renegotiation’

Firms will now be able to renegotiate terms and conditions in collective agreements one year after a transfer has taken place, provided that the overall change is no less favourable. Another change concerns microbusinesses of up to 10 employees, which will now be able to inform and consult employees directly when there is no trade union or employee representative within the workforce. Other changes include the new employer being able to engage in pre-redundancy consultation with workers, with the consent of the former employer; and contractual changes will be permitted for economic, technical or organisational reasons where there is a worker’s agreement or a contractual right of variation. Employment Relations Minister Jenny Willott said the aim of the changes was to ensure employees remain sufficiently protected while making it a smooth process.

“Making these changes will give businesses more clarity about conducting transfers and provide them with the tools to create new opportunities in the UK labour market, whilst protecting fairness for all.”

Our Employment team provides advice on the employment aspects of all major business decisions, including transfer of business. For advice, contact a member of the team, call us on 08456 381381 or email employment@ibblaw.co.uk.