Tupe 2006 & the Public Sector

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Tupe 2006 & the Public Sector

  1. 1. TUPE 2006 Nick Graham Assistant Head of Legal & Democratic Services [email_address] 27 November 2007
  2. 2. Standard TUPE definition – business transfer <ul><li>‘ the transfer of an economic entity which retains its identity’ (Reg 3(1)(a)) </li></ul><ul><li>Case law (Spijkers) says number of factors taken into account: </li></ul><ul><li>Type of undertaking in question; </li></ul><ul><li>Transfer of assets </li></ul><ul><li>Value of intangible assets </li></ul><ul><li>Whether staff taken on </li></ul><ul><li>Transfer of customers </li></ul><ul><li>Similarity of activities before and after transfer and duration of any interruption </li></ul>
  3. 3. New transfer definition: service provision change <ul><li>This would occur where: </li></ul><ul><ul><ul><li>A service previously undertaken by the client is awarded to a contractor (outsourcing) </li></ul></ul></ul><ul><ul><ul><li>Where a contract is assigned to a new customer on a subsequent re-tendering or </li></ul></ul></ul><ul><ul><ul><li>Where a contract ends with the service being performed in house (insourcing) </li></ul></ul></ul>
  4. 4. Effect <ul><li>Terms and Conditions </li></ul><ul><li>Continuity </li></ul><ul><li>Automatic Transfer </li></ul><ul><li>Liabilities (and Indemnities) </li></ul>
  5. 5. Who Transfers? <ul><li>An organised grouping of resources or employees immediately employed before the transfer. </li></ul>
  6. 6. How to decide who transfers <ul><li>The amount of time spent on one part of the business or the other </li></ul><ul><li>The amount of value given to each part by the employee </li></ul><ul><li>The contractual terms showing what the employee was required to do </li></ul><ul><li>How the costs to the employer of the employee’s services were allocated between the different businesses </li></ul><ul><li>Which part of the business manages the employee </li></ul>
  7. 7. Issues for the public sector <ul><li>Statement of Practice on Staff Transfers in the Public Sector </li></ul><ul><li>A Fair Deal for Staff Pensions </li></ul><ul><li>Code of Practice on Workforce Matters in Local Authority Service Contracts </li></ul><ul><li>The Best Value Authorities Staff Transfers (Pensions) Direction 2007 </li></ul>
  8. 8. Staff Problems <ul><li>Dismissals & Changes in Terms and Conditions </li></ul><ul><li>Economic, Technical or Organisational Reasons </li></ul>
  9. 9. Employee Liability Information <ul><li>Identity of employees who will transfer </li></ul><ul><li>Age </li></ul><ul><li>Info in statement of employment particulars </li></ul><ul><li>Any collective agreements </li></ul><ul><li>Disciplinary actions in previous 2 years </li></ul><ul><li>Any grievances in previous 2 years </li></ul><ul><li>Any legal action taken </li></ul>
  10. 10. Information and Consultation Obligations <ul><li>Which include </li></ul><ul><li>That the transfer is happening </li></ul><ul><li>Consequences of transfer </li></ul><ul><li>Any likely reorganisation </li></ul><ul><li>Must involve appropriate employees </li></ul>

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