Changes to TUPE regulations from January 2014

01 March 2014
Changes to TUPE regulations from January 2014

From 31 January 2014, changes take effect to the Transfer of Undertakings (Protection of Employment) Regulations.

The regulations govern how employees are protected when the business they work for transfers to a new employer.

The following key changes to the TUPE regulations are included from 31 January 2014:

 

  • Redundancy consultations with incoming staff can begin before the transfer takes place. However both employers must agree to this and redundancy selection must not take place until after the transfer is completed.

 

  • Collective agreements for incoming staff may be renegotiated one year after transfer, providing the terms are no less favourable to the incoming employees.

 

  • In some cases, changes to collective agreements agreed by the old employer after the date of transfer, may not be binding on the new employer.

 

  • The instances in which dismissals will be automatically unfair will be more limited, for example redundancies because the place of work changes will no longer be automatically unfair.

 

  • It may be easier to change terms and conditions for incoming staff.

 

  • Given the complexity of the regulations, legal advice should be sought to discuss the implications for any specific TUPE situation.


Further changes are scheduled in 2014:

From 1 May 2014, employee liability information must be given by the old employer to the new employer at least 28 days before the transfer (rather than 14 days, as is currently the case).

From 31 July 2014, new employers will be able to consult directly with incoming staff in a micro business (a business with less than 10 employees) where a union is not recognised. This means there will no longer be any need to appoint nominated representatives to consult on behalf of incoming staff, where the incoming staff belong to a micro business.

For further information on the changes to TUPE regulations, see this Acas guidance.

Further information is also available from the TUPE section of HRBird.

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