Monday 1st July 2024 is the implementation date for The Transfer of Undertakings (Protection of Employment) Regulations 2006, also known as TUPE amendments made by regulation 9 apply to a TUPE transfer taking place on or after 1st July 2024.
A "TUPE transfer" refers to a relevant transfer under the Transfer of Undertakings (Protection of Employment) Regulations 2006, or anything else regarded, by virtue of an enactment, as a relevant transfer for the purposes of those Regulations SI 2023/1426 Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 (SI 2023/1426).
What does this legislation mean for businesses then?
The TUPE regulation changes will have significant implications for businesses. One of the key changes is the proposal to reaffirm that only employees, and not 'limb (b)' workers, are protected by TUPE 2006. This comes in response to the uncertainty created by the Dewhurst judgement, which is not binding but has raised questions about whether TUPE applies to limb (b) workers.
Another significant change is the proposal to remove the obligation to split employees’ contracts between multiple employers where a business is transferred to more than one new business. Instead, the employers taking over the business or service would be required to agree who should be responsible for each employee’s contract.
Furthermore, the exception introduced in 2014, which only applied to 'micro-businesses' employing fewer than ten employees, has been amended. From 1 July 2024, it will apply to either an employer of fewer than 50 or to a case (of an employer of any size) where the number of transferring employees is fewer than ten [13A [Variation to the] duty to inform and consult where no appropriate representatives].
These changes aim to provide greater clarity and certainty for businesses in relation to TUPE transfers. However, they may also require businesses to review and potentially revise their current practices and procedures to ensure compliance with the new regulations.
If you require assistance with reviewing your current practices and procedures to ensure compliance with this new legislation PW-LA can help you with this.
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