Introduction to TUPE

Wednesday 16th May 2012

Stephen Jenkins, Partner

TUPE 2006

• “Relevant transfer”• Business transfer• Service provision change

Business transfers• Economic entity• Can be “not for profit”• Transfer of control• Retention of identity• Factors – “Spijkers”

“Spijkers” shopping list

• Assets• Customers• Goodwill• Employees• Degree of similarity• Degree of interruptionWhat about labour-intensive industries?

Service provision changes

• Activities on behalf of client• Cessation of those activities• Continuation by another party

Service provision changes

• Organised grouping of employees• Not for the supply of goods for the client’s use• Not single event or task of short-term duration• Activities must be broadly or essentially the same

The Public Sector dimension • Code of Practice• “Fair deal” for pensions• Welsh Government Directive

Impact of TUPE• Assigned employees• Transfer of terms and conditions• Continuity of employment• Pensions• Collective agreements

Dismissals?• Automatically unfair unless for ETO reason

entailing changes in the workforce

Variations?• Void unless for ETO reason entailing changes in

the workforce

Consultation obligations• Transferee to provide information on “measures”• Provision of information to affected employees• Consultation with appropriate representatives• Liability for failure to consult

Employee liability information• Transferor to provide 14 days before transfer or

as soon as practicable• Liability for failure to provide

Cardiff Derby Nottingham

Thank You

Contact Details

Stephen JenkinsDD : 029 2039 1730 stephen.jenkins@geldards.com