As of 1 July 2024, significant changes have been implemented to the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE). The most notable change is the extension of the micro-business exemption for informing and consulting employees during a TUPE transfer.
Previously, only employers with fewer than 10 employees could inform and consult directly with affected employees. The new rules extend this exemption to:
Employers with fewer than 50 employees
Employers of any size involved in the transfer of fewer than 10 employees.
This change applies only when there are no existing employee representatives or trade unions in place, and the employer has not invited elections for such representatives.
Implications for employers
The extension of this exemption is expected to reduce the administrative burden on smaller businesses and provide greater flexibility in managing TUPE transfers. Employers now have more options to adopt a personalised approach when communicating with affected employees about the transfer and any related measures.
However, it's crucial to note that this relaxation of requirements does not absolve employers of their duty to inform and consult. Failure to comply with TUPE obligations can still result in penalties of up to 13 weeks' gross pay per affected employee in the event of a successful claim.
Additional considerations
While the recent changes focus on informing and consulting obligations, other aspects of TUPE remain unchanged. These include:
The automatic transfer of employment contracts to the new employer.
Protection of employees from dismissal or changes to terms and conditions solely due to the transfer.
The requirement to provide Employee Liability Information to the transferee.
These changes currently apply only in Great Britain. Northern Ireland has not implemented similar amendments.
Further reading
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