TUPE rules change as at 31 January 2014

A new set of requirements affecting business transfers and outsourcing came into force on the 31st January.

Changes at a Glance

Relevant transfers
Service provision changes

Change 1: The activities carried out under outsourced or tendered work must be “fundamentally the same” for TUPE to apply.

Contracts of employment
Changes to terms and conditions

Change 2: Altering contractual terms and conditions.

Change 3: Dismissals are no longer automatically unfair because of a change in the workplace location.

Change 4: Terms and conditions from collective agreements may be renegotiated after one year provided that overall the contract is no less favourable to the employee.

Change 5: In some circumstances contractual changes arising from new collective agreements agreed by the outgoing employer are not required to be incorporated after a transfer.

Dismissals and redundancies

Change 6: An employee will be automatically unfairly dismissed if the sole or principal reason for the dismissal is the transfer.

Change 7: Redundancy consultation can begin before the transfer if both employers agree.

Employee liability information (ELI)
Change 8: Information about transferring employees should
be given earlier.

Information and consultation rights
Who should be consulted?

Change 9: Businesses with fewer than 10 employees are not required to invite the election of representatives for consultation purposes if no existing arrangements are in place.