The Transfer of Undertakings (Protection of Employment) Regulations 2006 (‘TUPE’) apply where:
- A business transfer occurs e.g. a business is sold to a new owner or another organization; or
- A service provision change occurs, e.g. activities that were previously carried out by a business in-house are contracted out or activities that were previously subcontracted out are brought in-house.
Removing TUPE Red Tape
For many years, the legal obligation to elect employee representatives has been seen as an unnecessary burden on SME’s who are often involved in small-scale TUPE transfers. Following a consultation on TUPE, the government has finally decided to alter the obligation to hold an election for employee representatives in certain situations.
From 1 July 2024, employers with fewer than 50 employees undertaking a TUPE transfer of any size and businesses of any size undertaking a transfer involving fewer than 10 employees will no longer have to arrange for employee representatives to be elected for the purposes of the TUPE consultation process. The only exception to this being if employee representatives have already been appointed for this particular purpose.
If you propose to make a TUPE transfer before 1 July 2024 then the usual obligations to arrange elections for employee representatives continue to apply although businesses with fewer than 10 employees are exempt from this obligation.
For advice or further information on TUPE or the forthcoming changes, call Henry Doswell of Doswell Law Solicitors on 01233 722942. Alternatively, email Henry at firstname.lastname@example.org
Disclaimer: Whilst every reasonable effort is made to make the information and commentary contained in this blog accurate and up to date, Henry Doswell takes no responsibility for its accuracy and correctness, or for any consequences of relying on it. The information and commentary in this blog does not constitute legal advice to any person on a specific case or matter. You are strongly advised to obtain specific, personal advice from a lawyer about your case or matter.