Government plans TUPE improvements

The government has announced plans for changes to the TUPE transfer regulations which should improve the rights of employees affected by takeovers and outsourcing.

The changes would mean that TUPE would apply more comprehensively when labour-intensive services are contracted-out. This would clarify the law following a number of seemingly contradictory legal rulings over whether or not labour-intensive industries are always covered by the transfer laws.

The government says that it will make it clear that services such as office cleaning, catering, security guarding and refuse collection will be covered.

The government is also looking at placing an obligation on the old employer to give the new employer proper information on the pay and benefits of staff who are liable to be transferred.

This would avoid situations where a contractor successfully bids for a contract without proper information about the liabilities and responsibilities that will be incurred in respect of the transferred labour force.

A Department of Trade and Industry statement also said that it intends to "clarify" the circumstances in which employers can lawfully dismiss for redundancy in post transfer situations.

The law is also likely to be changed to assist in business rescues where companies are insolvent.

The changes will not, however, cover pension rights which are being considered as part of the consultation over the government's pensions green paper.

Following consultation on draft regulations the changes should be in force next spring.