Changes to TUPE regulations delayed

Businesses should be aware that changes to regulations protecting employees if their employer changes hands have been delayed until early next year.

The Transfer of Undertakings (Protection of Employment) Regulations, known as TUPE, exist to effectively move employees and any liabilities associated with them from the old employer to the new employer.

The proposed changes, which were originally intended to take effect from October, included removing 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.

The Department for Business, Innovation and Skills (BIS) has been consulting on the changes and is due to publish its findings this month (September 2013). BIS is still finalising the timescale for the TUPE changes but plans to put the draft regulation before Parliament in December this year, so that they come into force in January 2014. 

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.

Businesses whose activities are likely to fall under TUPE over the coming months should pay close attention to developments, particularly if the business will be changing hands in the New Year.  If in doubt, you should always seek professional advice.

For further information, please contact Tim Preece at the office.