Imminent changes in Employment Law: streamlining TUPE considerations
For TUPE transfers taking place on or after 1 July 2024, The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 provides that small businesses with fewer than 50 employees and businesses of any size that are proposing to transfer fewer than 10 employees will be able to consult directly with transferring employees if there are no existing employee representatives (rather than the current requirement for representatives to be elected if appropriate representatives are not in place already).
If an employer does not properly meet the statutory obligations to inform and consult with employees (or their representatives), then the employer can be liable for claims of protective awards of up to 13 weeks’ full pay per affected employee.
This change will simplify the consultation process, saving companies time and money in the process. However. there are many other changes that government could have considered to make the TUPE Regulations less burdensome and complex for employers but it appears the opportunity has been missed e.g. making it easier for an employer to change terms and conditions of employment of staff following a TUPE transfer, including harmonising terms and conditions of employment with existing employees. Consequently, the TUPE Regulations will remain largely the same.
Our Employment team frequently advises on the TUPE Regulations, business transfers, outsourcing and reorganisations. If you require advice in this area, please contact us.
The new two-tier system will see an increased number of people awarded enhanced employment protections. Not only does Labour propose this change in relation to whom can benefit from these protections, but they are also proposing changes to the protections themselves.
Current legislation dictates that you must have two years’ continuous employment in order to bring a claim for unfair dismissal, Labour hopes to scrap this making the right not to be unfairly dismissed a day one right. However, the revised proposal indicates that there may still be exceptions to this, such as where a probationary period applies.
As we are still being drip-fed information relating to Labour’s proposals, it is difficult to predict how these proposed changes will impact the wider employment sector. Only time will tell whether or not Labour can deliver on its promising proposals.
