The DTI is pressing ahead with a new TUPE from 6th April 2006, having just published guidance to the new regulations (as yet unpublished!)

The guidance indicates that there will be some changes to the draft regulations which were published in March 2005. For example it appears that professional business services will not be excluded from the scope of TUPE, as previously suggested.

According to the guidance, the key changes to TUPE are:

  • a widening of the scope of TUPE to cover cases where services are outsourced, insourced or assigned to a new contractor (described as service provision changes);
  • a new duty on the transferor to supply information about the transferring employees to the transferee (by providing what is described as "employee liability information");
  • special provisions making it easier for insolvent business to be transferred to new employers;
  • provisions which clarify the ability of employers and employees to agree to vary contracts of employment in circumstances where a relevant transfer occurs ;and
  • provisions which clarify the circumstances under which it is unfair for employers to dismiss employees for reasons connected with a relevant transfer.

The new obligation on the transferor to provide information to the transferee about the transferring employees before a relevant transfer takes place has been clarified in the guidance. The guidance sets out the information which will have to be provided and states that this information should, unless not reasonably practicable, be given at least two weeks before the completion of the transfer (the current draft regulations refer to "in good time"). The guidance makes it clear that it will not be possible to contract out of the information provisions. Most significantly the guidance states that the remedy for failing to inform employees will be not less than £500 for each employee for whom the information was not provided, or if the information provided is defective.

Please click herefor a link to the DTI guidance, it is hoped that the final regulations will be available shortly.

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 08/02/2006.