Changes to the Consultation Requirements under TUPE on the horizon
23rd May 2024
The Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE”) applies where a company’s employees are transferring, either following a change in service provision to a new company or a business transfer to a new company.
Current Law
In accordance with TUPE, the employees who will be affected by the transfer must be consulted via elected employee representatives. If this consultation requirement is not complied with, such as the representatives not being correctly consulted or the employees being consulted directly, then each affected employee may be entitled to receive up to 13 weeks’ pay in compensation. The only current exception applies to micro-business with less than 10 employees overall, which are entitled to consult with the employees directly in relation to a transfer.
Changes to TUPE
As of 1st July 2024, the requirement to elect representatives will be changing. It is currently anticipated that those changes will include that employee representatives will no longer be required where:
- a business has less than 50 employees overall; and
- less than either 10 or 20 employees are to be affected by the transfer; this is subject to further confirmation in due course.
In these cases, employers will be required to consult with employees directly rather than through their representative.
Please note that the requirement to elect employee representatives will continue to apply to all companies with more than 50 employees, or with a smaller company if more than 20 employees will be affected by the transfer. A failure to elect or consult with representatives in these cases may result in each affected employee being entitled to an award of up to 13 weeks pay.
If you would like to speak to someone about any Employment Law queries, please contact either Jason Alcock or Victoria Ramshaw in our Employment and Dispute Resolution Team on 01543 267 238 or by email to jalcock@ansons.law or vramshaw@ansons.law.
If you would like to be kept up to date with Ansons news please follow us on Facebook, LinkedIn or Twitter.
