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TUPE. Christine Joy Principal HR Manager 16 February 2011. What is a transfer of undertaking? Situations where TUPE applies/doesn’t apply Managing a TUPE situation The ETO reason Potential implications for consortia References and links. What is TUPE?.

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slide1

TUPE

Christine Joy

Principal HR Manager

16 February 2011

slide2
What is a transfer of undertaking?
  • Situations where TUPE applies/doesn’t apply
  • Managing a TUPE situation
  • The ETO reason
  • Potential implications for consortia
  • References and links
what is tupe
What is TUPE?
  • Transfer of Undertakings (Protection of Employment) Regulations 2006 applies to
    • Business transfers
    • Service provision changes

Some transfers will be both of these.

  • Cabinet Office Statement of Practice (COSOP)
situations where tupe applies
Situations where TUPE applies
  • Mergers
  • Sales of businesses by sale of assets
  • Change of licensee or franchisee
  • Gift of business through execution of a will
  • Contracting out of services
  • Changing contractors
  • Where all or part of a sole trader’s business/partnership is sold or otherwise transferred
where tupe doesn t apply
Where TUPE doesn’t apply
  • Transfers by share take over
  • Transfers of assets only
  • Transfers of a contract to provide goods or services where this does not involve the transfer of a business/part of a business
  • Supply of goods for a client’s use
  • Transfers outside of the UK
managing a tupe situation
Managing a TUPE situation
  • All employees employed in the organisation that is to transfer are covered by the law.
  • Consultation and notification
  • Pensions
  • Information
the eto reason
The ETO reason
  • The economic, technical or organisational (ETO) reason
  • One of the few legitimate factors for the basis of a refusal to take on a transferor’s workforce by the prospective transferee
  • Transferee would be liable for claims
  • Employees must have one years service to accrue employment protection rights
potential implications for consortia
Potential implications for consortia
  • TUPE is complex – seek legal advice at the earliest possible stage
  • You cannot prevent TUPE applying
  • You can negotiate – particularly important around how to deal with liabilities that may exist – include “indemnities” in the agreement
  • Assignment of PCT staff to consortia during transition
links and references
Links and References
  • http://www.cipd.co.uk/subjects/emplaw/tupe/tupe.htm CIPD Fact Sheet on TUPE
  • Cabinet Office Statement of Practice (COSOP) Staff Transfers in the Public Sector revised November 2007
  • http://www.dh.gov.uk/prod_consum_dh/groups/dh_digitalassets/documents/digitalasset/dh_122755.pdf - Annex to 15 December letter – Update on HR Strategy
  • http://www.dh.gov.uk/prod_consum_dh/groups/dh_digitalassets/@dh/@en/@ps/documents/digitalasset/dh_123178.pdf Appendix A - Influencing your own future
  • http://www.dh.gov.uk/prod_consum_dh/groups/dh_digitalassets/@dh/@en/@ps/documents/digitalasset/dh_123177.pdf Appendix B - Frequently Asked Questions