Earlier this month the Government introduced the new draft Transform Undertakings (Protection of Employment), known as TUPE, regulations, which are expected to come into effect in January 2014.
The main changes implemented by the draft Regulations will be widening the scope for employers to vary contracts of employment post-transfer, changing the rules on dismissal and allowing transferees to commence redundancy consultation before the transfer.
Specifically, it is proposed that they will allow for renegotiation of terms agreed from collective agreements one year after transfer, provided any changes are no less favourable to employees and will clarify that, for TUPE to take effect, a service provision must be “fundamentally or essentially the same” before and after the transfer.
The changes will also provide for a static interpretation of collective agreement terms in the context of a TUPE transfer as a result of the Alemo-Herron Decision.
They will also amend certain provisions of the regulations to bring them closer to the language of the Acquired Rights Directive, which includes amending the meaning of “entailing changes in the workforce” to include changes to the workforce’s location and amending the Trade Union and Labour Relations (Consolidation) Act 1992 to allow consultation which commences prior to the transfer date to count towards satisfying the collective redundancy rules.
Finally, the changes will allow micro businesses, meaning those with fewer than 10 employees, to inform and consult with their employees directly with regard to TUPE in certain circumstances.
It should be noted that these are draft Regulations only at this stage and still need to be finalised and agreed, which will happen when they are put before Parliament, which will probably be next month.