TUPE regulations: consultation paper on amendments published

The DTI has published its long-awaited consultation paper on amendments to the 1981 TUPE regulations. The proposals aim to ensure flexibility, fairness and the smooth management of the transfer. The main proposals on which views are sought (until 15th December 2001) are:

   * Whether, where appropriate, employees affected by transfers within public administration are to be given TUPE-equivalent protection. 

   * Should additional measures be introduced regarding the application of TUPE to service provision changes e.g. contracting- out/in, and if TUPE does apply what form should these measures take? 

   * Greater protection for occupational pension rights on transfer as the current, uncertain, legal position is unsatisfactory. This is to apply equally to public and private sector employees. 

   * Written notification of all employee rights and obligations to be provided by the transferor to the transferee in good time before a transfer and views are also sought on the possible remedies for breaches of such requirements. 

   * Better guidance for employers and employees on the provisions regarding protection against unfair dismissal on transfer to be provided by a number of drafting improvements – in particular a clarification of the “Economic, Technical or Organisational” defence. 

   * Making it clear that TUPE does not preclude transfer-related changes to employees’ terms and conditions made for an “ETO” reason. 

   * The transfer of insolvent businesses as going concerns is to be promoted and facilitated, thus saving jobs and the business entity itself into the bargain.
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