TUPE changes designed to reduce burden on small businesses
The administrative burden on small businesses involved in takeovers could be eased by the latest changes to the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE).
TUPE regulations are designed to protect the interests of employees if their company is sold to new owners.
The regulations come into effect on 31 July to allow firms employing fewer than 10 people to deal directly with affected employees if there isn’t a recognised trade union, and where the firm has not asked employees to elect a representative.
It is the latest in a number of changes to the TUPE regulations. An amendment earlier in the year meant that a change in work location following a takeover could be seen as a genuine ‘place of work’ redundancy, rather than automatically treated as unfair dismissal.
New employers are now able to change the terms one year after the transfer, providing they are no less favourable overall to the employee.
On 1 May an amendment came into force that increased the timescale for a transferor to provide ‘Employee Liability Information’ to a transferee from 14 days to 28 days.
Please contact John Carter for more information on the amendments to TUPE regulations or any other aspect of employment law.