TUPE to get a substantial overhaul

The government has announced its intention to radically overhaul the TUPE Regulations.  See the following link;


The most important development for our clients is the proposed repeal of the service change provisions.  When the Regulations were re-drafted in 2006 they included a new form of TUPE transfer referred to as a service provision change.  In a nutshell these ‘transfers’ involved situations where rather than one business being taken over by another (a normal TUPE transfer) there could still be a transfer when a company outsourced some services to another company (for example cleaning).

In this situation the employed cleaners undertaking the services for the original company would be transferred to the company that the work had been outsourced to.  Furthermore, if the client decided to move the services from one outsourced provider to another then the employed cleaners could transfer from the first service provider to the second.

The SPC part of the Regulations made bidding for services and the transfer of services from one contractor to another complex, time consuming and expensive.  What is more the SPC provisions are effectively a ‘gold-plating’ of the European Acquired Rights Directive and therefore unnecessary.

This is a welcome move by the government particularly for a number of our clients including employment agencies.  This should give welcome relief when companies are bidding to be awarded service contracts.

One note of caution however…these are at the moment only proposals.  The devil is always in the detail and we will analyse this when it is available.

Published: 04.03.13 - Posted In: Latest News