Originally the DTI had planned to lay the new regulations before Parliament by 1 July 2005, bringing them into force on 1 October 2005. However, as a result of the large volume of responses to the consultation exercise, which closed on 7th June, and the many issues that have been raised by respondents, Ministers have decided to set a new timetable for finalising the Regulations. Consequently, the DTI now plans to lay the regulations before Parliament in Autumn 2005, bringing them into force on 6 April 2006.
The main changes that the new regulations will make include widening the scope of TUPE in 'contracting-out' situations; clarifying the law on transfer-related dismissals; imposing an obligation on the transferor to notify the transferee of all rights and liabilities that will pass on the transfer and giving greater flexibility where the transferor is insolvent. Businesses outsourcing or selling business assets of course have to deal with the law as it stands at the time of each deal, but the uncertainty introduced by this fresh delay to new law intended to end uncertainty is most unwelcome.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 24/06/2005.
