UK: TUPE – All Change

Change

Effective Date

1.

In the case of a service provision change, the activities carried out after the transfer must be "fundamentally the same as the activities carried out by the person who has ceased to carry them out". This clarifies when a service provision change will apply.

Applies to transfers which take place on or after 31 January 2014.

2.

Employee Liability Information ("ELI") (for example the terms and conditions of employment relating to each transferring employee and details of any grievances etc.) should be provided no later than 28 days before the transfer date. Previously, ELI had to be provided no later than 14 days before the transfer date; however, this was seen as too late in the process and did not promote early exchange of information for both parties to engage in the information and consultation process.

Applies to transfers which take place on or after 1 May 2014.

3.

A transferee (the new employer) cannot vary a transferred employee's terms and conditions of employment if the sole or principal reason for the variation is the transfer.

However, a transferee may vary a transferred employee's terms and conditions of employment if:

(a) the sole or principal reason for the variation is an economic, technical or organisational reason ("ETO") which entails a change in the workforce (which can include a change in the place of work); or

(b) the variation applies to terms which are incorporated by a collective agreement and the variation takes effect more than 1 year after the transfer date, and following the variation, the rights and obligations in the contract, when considered together, are no less favourable to the employee than those which applied immediately before the variation.

Applies to transfers or purported variations which take place, are agreed or take effect on or after 31 January 2014.

4.

It is automatically unfair to dismiss an employee if the sole or principal reason for the dismissal if the transfer itself. A dismissal for a reason connected to the transfer which is not an ETO is no longer automatically unfair. However, a dismissal for an ETO reason could still be unfair on the grounds of redundancy or some other substantial reason.

Applies to transfers and dismissals where notice is given or takes effect on or after 31 January 2014.

5.

"Micro-businesses" i.e. those employing fewer than 10 employees may directly consult affected employees over a TUPE transfer where there are no existing appropriate representatives and the employer has not invited any affected employees to elect employee representatives.

Applies to transfers which take place on or after 31 July 2014.