TUPE, redundancy and discrimination under review to reduce burden

16 May 2011

The government has announced that it will review the TUPE regulations as well as discrimination compensation limits and redundancy consultation requirements.

The aim is to reduce the burden on businesses.

The TUPE regulations, which protect the terms and conditions of employees moving from one organisation to another in a merger or takeover, have been criticised by some as overly bureaucratic.

It has also been argued that the unlimited compensation available from discrimination claims puts employers on an ensure footing, and potentially encourages vexatious claims.

Redundancy regulations currently require a 90-day consultation period organisations making more than 100 staff redundant. Some businesses have argued that this hinders their ability to plan effectively. 

Given that TUPE and discrimination have their roots in European law, critics have argued that it will be extremely difficult for the government to make substantial reform in these areas. 

Source: NDS

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