An introduction to the main TUPE issues

1. Introduction to TUPE
Stephen Jenkins, Partner
Wednesday 16th May 2012

2. TUPE 2006
• “Relevant transfer”
• Business transfer
• Service provision change

3. Business transfers
• Economic entity
• Can be “not for profit”
• Transfer of control
• Retention of identity
• Factors – “Spijkers”

4. “Spijkers” shopping list
•Assets
•Customers
•Goodwill
•Employees
•Degree of similarity
•Degree of interruption
What about labour-intensive industries?

5. Service provision changes
• Activities on behalf of client
• Cessation of those activities
• Continuation by another party

6. Service provision changes
• Organised grouping of employees
• Not for the supply of goods for the client’s use
• Not single event or task of short-term duration
• Activities must be broadly or essentially the same

7. The Public Sector dimension
• Code of Practice
• “Fair deal” for pensions
• Welsh Government Directive

8. Impact of TUPE
• Assigned employees
• Transfer of terms and conditions
• Continuity of employment
• Pensions
• Collective agreements

9. Dismissals?
• Automatically unfair unless for ETO reason
entailing changes in the workforce

10. Variations?
• Void unless for ETO reason entailing changes in
the workforce

11. Consultation obligations
• Transferee to provide information on “measures”
• Provision of information to affected employees
• Consultation with appropriate representatives
• Liability for failure to consult

12. Employee liability information
• Transferor to provide 14 days before transfer or
as soon as practicable
• Liability for failure to provide

13. Thank You
Cardiff Derby Nottingham

14. Contact Details
Stephen Jenkins
DD : 029 2039 1730
stephen.jenkins@geldards.com