The Government has published its response to the consultation on the proposed changes to the TUPE Regulations.
There are a number of notable changes to the Government’s plans and below is a summary of what is and what is not changing:
The main changes which are proceeding are:
- Allow renegotiation of terms agreed from collective agreements one year after transfer, provided any changes are no less favourable to employees;
- The location of a workforce can be within the scope of an economic, technical or organisational reason entailing changes in the workforce, thus preventing genuine place of work redundancies from being automatically unfair;
- Clarify that for there to be a TUPE service provision change, the service provision must be “fundamentally or essentially the same” as before the transfer;
- Allowing microbusinesses to inform and consult directly with employees; and
- Allowing TUPE consultation to satisfy collective redundancy consultation rules (in some circumstances).
The Government is not:
- Removing “service provision change” from what amounts to a TUPE transfer; and
- Removing the transferor’s obligation to provide employee liability information; rather, the time for providing such information is to be increased to 28 days (from 14).
For further details of how the changes might affect your business, clients should speak with their legal manager.