12. Business transfers and contracting out — TUPE

The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), were introduced to protect the rights of employees on the transfer of the business in which they are employed. TUPE was originally enacted to comply with a European Directive known as the Acquired Rights Directive.

Under the last government, TUPE protection was significantly eroded, attacked by those in power as a burdensome barrier to growth and a block on the privatisation of public service delivery.

New regulations were enacted to reduce TUPE protection, known as the Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2014 (the 2014 Regulations). The changes affect all transfers on or after 31 January 2014. Their effect is explained in this Chapter.