Revamped TUPE due by September

Employment Minister Jo Swinson has recently announced that simplified TUPE regulations will be unveiled by September 2013.

TUPE - Transfer of Undertakings (Protection of Employment) - can be a complicated area. In simple terms it applies to situations where companies have merged or been bought out, and it protects employees by enabling them to carry forward certain employment rights.

For the employer, however, TUPE can be a difficult area. TUPE applies when there is a “relevant transfer” and this in turn is assessed using a number of factors such as the type of undertaking being transferred, the assets that are transferred, and whether the majority of employees are taken on by the new employer.

It often prevents the employer being selective about which employees they take from the old business – unless they are prepared to pay sometimes hefty redundancy payments.

Many Employment Tribunal cases are brought to court over rules originating in TUPE. Therefore, new rules on TUPE have been eagerly awaited by employers, and Jo Swinson has promised a “simpler”

regime that will provide greater certainty for businesses.

“We can’t get out of TUPE legislation because it already exists,” said Swinson at a recent conference, but she hinted at a scaling back of current rules, and promised to clarify the effect on TUPE transfers that are currently in progress.

If you have a question about TUPE, or about any area of employment legislation, please contact me.