9. Business transfers and contracting out
[ch 9: pages 116]The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) are intended to protect the rights of employees on the transfer of the business that employs them where that transfer results in a change in the employer’s identity. TUPE is likely to be triggered by business sales, mergers, inter-company reorganisations, outsourcing, “insourcing” (taking business back in-house) and changes in contractor.
The regulations are designed to preserve the continuity of employment and contract terms of employees of the transferring organisation. TUPE also protects anyone who is dismissed because of the transfer immediately before it takes place. There are special rules about pensions.
In January 2014, important changes were made to the TUPE regime, reducing the protection provided to employees. In particular, the changes have made it easier and quicker for transferees to change terms and to carry out dismissals for transfer-related reasons.
For further information see the LRD booklet TUPE — a union rep’s guide to using the law (www.lrdpublications.org.uk/publications.php?pub=BK&iss=1897)