The Transfer of Undertakings (Protection of Employment) (TUPE) Regulations protect employees in circumstances where the business or part of the business for which they work is sold or transferred to a new owner. Also, may apply when a service transfers to a new provider.
Currently larger businesses are required to elect employee representatives for consultation on a TUPE transfer where appropriate representatives are not already in place, can add to the complexity of the TUPE transfer process. Whereas micro-businesses with fewer than 10 employees may inform and consult affected employees directly if there are no existing appropriate representatives in place.
The Government are consulting on removing the requirement to elect employee representatives for the purpose of TUPE consultation for:
- Businesses with fewer than 50 employees, irrespective of the size of the transfer.
- Businesses of any size involved in a transfer of fewer than 10 employees.
What does this mean for employers?
Removing this requirement for businesses with fewer than 50 people and transfers affecting less than 10 employees, allowing businesses to consult directly with the affected employees will simplify the process.
While there are no other changes being proposed to TUPE, the consultation does make a general call for how the TUPE regulations 'could be improved' beyond these proposals.
What should I do next?
We’ll keep you updated, but in the meantime, if you want to ensure that you’re fully compliant, let us help you and contact us today.