The changes to the Transfer of Undertakings (Protection of
Employment) Regulations of 1981 - commonly known as the TUPE
Regulations - aim to make the process of business restructuring and
public sector modernisation less threatening for employees and
smoother to operate for employers.
The main proposals in the consultation document include:
- Options for new rules on when the TUPE Regulations apply,
particularly in cases where services are contracted out;
- Proposals for better protection of employees' occupational
pension rights;
- Greater flexibility when applying the Regulations to transfers
of insolvent businesses, to make it more attractive for potential
buyers to rescue those businesses and save jobs;
- Better guidance for both employees and employers on the extent
of protection against transfer-related dismissals or changes to
terms and conditions; and,
- A legal requirement for the old employer (transferor) to give
the new employer (transferee) proper notification about the rights
and obligations being transferred.
Outlining the proposals in her speech to the TUC conference,
Patricia Hewitt said:
"Workers need reassurance that their rights
will be safeguarded in the vital process of public sector reform
and in business restructuring in the private sector. That's why
today I am announcing proposals for the reform of the TUPE
arrangements, including looking at occupational pensions.
"The Government recognises that the existing
Regulations are not working as well as they might do. Employers and
employees, contractors and clients have all been pressing for
change. The new proposals will provide greater assurance for
employees and help to ease the process of change."
The consultation will involve representatives of all those whose
interests the Regulations affect, in both the private and public
sectors. This includes the main social partners (such as the TUC
and the CBI) and TUPE specialist groups (including the TUPE Forum,
which represents all major parties with an interest in public
sector service contracting). The deadline for comments is 15
December 2001.
Details on
the consultation process
