The 2014 TUPE came into play in January 2014 and effect any TUPE Transfer which takes place after the transfer date. As such they are not retrospective. During the consultation period for the new regulations there was talk of the service provision changes being removed. Fortunately this has not happened; instead the service provision changes have been varied to require the service to be fundamentally or essentially the same as the service carried on before the transfer.
Another big change is the transferee’s ability to consult with transferring employees prior to the transfer where collective redundancy consultation is required. Previously, a transferee would have to wait until after the transfer before commencing the consultation.
The deadline for supplying employee liability information to the new employer has increased from 14 days to 28 days. The requirements to inform and consult employee representatives have been removed for micro businesses, eliminating the unnecessary burden of electing employee representatives in very small organisations.
For many employers the biggest frustration around transfers relates to the inability to change contracts or employment of the transferring staff. The rules have to allow variations to contracts of employment where the variations are no less favourable to the employee.
More protection is offered to employers wishing to change the workplace post transfer by making it a potential ETO reason and therefore genuine workplace closure redundancies not being automatically unfair as they relate to a TUPE transfer.
TUPE remains one of the most complex areas of Employment Law. The new changes should provide some comfort to transferee employers but the area remains a difficult one for many employers. Properly drafted warranties and indemnities in the business sale agreement are essential to limit he risks for both parties.
Andrew is a Commercial & Employment Law solicitor in Leicester. Our Solicitors in Leicester are experts in their fields and dedicated to quality client care. If you would like to find out more about our solicitors in Leicester please contact us.Talk to our legal team
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