TUPE 2014: 5 key points for employers07 Feb 2014
The latest revisions to TUPE* are in pale contrast to sweeping changes first talked about in January 2013. We look at the changes to TUPE introduced on 31 January 2014.
TUPE will operate in the following scenarios:
- A business transfer; or
- A service provision change:
A client outsourcing services to a contractor or replacing one contractor with another contractor or reassigning the services back in-house.
Key Changes in 2014
1. The transferee (new employer) can carry out redundancy consultation for transferring employees before the transfer takes place. This will be particularly useful for employers managing collective redundancy consultation as they can start the process (30/45 days) prior to the transfer which will save time and cost to the new employer. The transferor (old employer) must consent to this.
2. The deadline for the old employer to provide “employee liability information” to the new employer will increase from 14 to 28 days before the transfer with effect from 1 May 2014.
3. Collective agreements – terms deriving from such agreements can be varied provided the variation takes place at least one year after the transfer date and “when considered” together are no less favourable to the employee following the variation. Furthermore, the new employer will no longer be bound by the terms and conditions negotiated in the future to which they are not a party to.
4. The definition of Service Provision Changes is amended to reflect recent case law. For the purposes of a “relevant transfer”, the activities to be carried by the new service provider must be fundamentally the same as those that were carried out by the person who ceased to carry them out.
5. The prohibition on new employers making contractual changes following a TUPE transfer will be limited to cases where the transfer is the reason for the change. Contractual changes will be permitted where the change is authorised by the employee’s contract, for example, changing the employee’s place of work.
If you are an employer involved in service outsourcing, acquisitions, mergers or other transfers, then it is imperative that you are up to date with changes to TUPE.
*The Collective Redundancies and Transfer of Undertakings (Protection of Employment) Regulations 2014