Cutting red tape

Simplification of TUPE rules

Simplification of  TUPE rules has been proposed by central government to make business transfers easier.

Subject to certain qualifying conditions the current Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE”) apply as a ‘relevant transfer’:

  • when a business or undertaking, or part of one, is transferred to a new employer; or
  • when a ‘service provision change’ takes place (for example, where a contractor takes on a contract to provide a service for a client from another contractor.

Broadly speaking, the effect of the TUPE regulations is to preserve the employment and terms and conditions of those employees who are transferred to a new employer when a relevant transfer takes place. So, for example, if Business A is sold to Business B, staff employed by Business A (the transferor) immediately before the transfer will usually automatically become employees of Business B (the transferee) and would retain the terms and conditions (other than certain occupational pension rights) they had when they worked for Business A. Continuity of service is preserved so that it is as if their contracts of employment had originally been made with the transferee employer. There is also protection for employees against variations to their terms and conditions where the reason for the variation is related to the transfer.

There are currently between 26,500 and 48,000 TUPE transfers taking place each year, with the number of employees affected likely to be between 1.42 million and 2.11 million per year.

The Government states that it is “determined that unnecessary gold-plating and over regulation should be removed. It is essential that the regulations are fit for purpose and, in particular that they are clear and work as effectively as possible.”

As a precursor to these changes the government is seeking views on the current regulations and how they should be adapted.

Views can be given via the following link to a survey being run by the Department for Business, Innovation & Skills (BIS).

TUPE is very much a part of today’s recruitment market place and City Centre recruitment have extensive experience of TUPE and in particular the taking over of a larger number of temporary staff from  outgoing contractors. If you are a business based within Dorset, Somerset or Hampshire and would like to discuss TUPE and its potential impact and how to manage this risk please contact Dan Shrimpton, MD of City Centre Recruitment based in Southampton, Bournemouth, Weymouth and Yeovil, for more details.

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City Centre

Dan Shrimpton - Managing Director City Centre Recruitment

Bournemouth - 01202 586 930

Southampton - 02382 350 250

Weymouth - 01305 239 239

Yeovil - 01935 478 800

Bridgwater - 01278 557 575

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