On 1st July 2024, new amendments to the TUPE regulations (the Transfer of Undertakings (Protection of Employment) Regulations 2006) have come into effect for any transfers which occur after 1st July 2024.
What is TUPE?
Protection is afforded to employees and obligations are placed on employers under the Transfer of Undertakings (Protection of Employment) Regulations 2006(TUPE) where there is a business transfer or a change in service provision,
TUPE provides protection for employees when the business in which they are employed changes ownership or there is a change in service provider in relation to activities that employees have been carrying out.
Current position
The current position is that employers employing fewer than 10 employees only have to consult directly with the affected employees instead of with elected representatives. Elected representatives can be a recognised trade union or employee representatives appointed by the affected employees who have the authority to be consulted about the transfer.
Employers who have more than 10 employees have to consult with those elected representatives.
New position for transfers that occur from 1st July 2024
However, with respect to any transfers that occur after 1st July 2024, employers will be able to dispense of their obligation to consult with elected representatives if one of the following applies:
- The business employs fewer than 50 employees; or
- There are fewer than 10 employees transferring.
In order for this exception to apply, there must be no appropriate representatives already present.
The benefit of this is that consultation will be less complex and will allow for more streamlined transfers if only a small number of employees are transferring. However, where there are a large number of employees transferring, for example 45, it may be easier to consult with employee representatives than with each employee individually.
Please note that this is only a brief summary and is not intended to be legal advice. Please contact us if you would like more information about the issues raised in this article or any other aspect of employment law at 02920 345 511 or employment@berrysmith.com