Government announces reforms to TUPE

Employers and staff in a business which is changing owner will find the process of the transfer easier, fairer and more effective the Government has claimed as it announced a number of reforms.

When a business changes owner, its employees may be protected under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE). TUPE protections make sure that employees don’t unfairly lose out when a transfer takes place, and set out the rules that the old and new businesses have to follow.

In a response to a consultation on TUPE regulations earlier this year, the Government has announced that the laws will be improved to make sure both employers and staff are treated fairly when a transfer takes place.

Employment Relations Minister Jo Swinson said:

“TUPE rules are essential to making sure that when a business is transferred from one company to another, it happens in a fair and efficient way. There have been some areas of the law which created uncertainty and confusion for businesses trying to comply with the law.

“By making these changes we will clear out the cobwebs in some of the rules which will give businesses more clarity about conducting transfers. As part of the Red Tape Challenge we are reforming these rules, keeping in place the necessary protections for employees and helping support a stronger economy.”

According to the Government, the changes will remove unnecessary gold plating to EU Law and reduce red tape. They will remove unfair legal risks from businesses and thereby increase their confidence and competitiveness without the shadow of legal worries hanging over them.

The government intends that the new regulations will be laid in Parliament in December 2013.

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