PracticeConsultingFirms fear TUPE reform

Firms fear TUPE reform

Government fails to remove fear of accounting staff swapping from one firm to another

The government has not taken the opportunity to prevent accounting staff
transferring from one firm to another if a client chooses a new service
provider, according to a commercial law firm.

Richard Isham, head of employment at law firm Wedlake Bell, has warned that a
reform of Transfer of Undertakings (Protection of Employment) regulations that
come into force from 6 April does not include an exemption for professional
services firms from the possibility that staff working on an ongoing basis with
a client could move to another firm if the client changes provider.

‘An accounting firm may have staff working in house for an audit client, with
this continuity of service these staff may want to keep their jobs with the
client,’ said Isham.

Even though the likelihood of firm’s staff staying with a client was small,
Isham warned the government had provided no protection for professional services
firms.

Accountants, law firms, banks and management consultants are thought to be
most at risk for the lack of exemption, as they often devote large teams to
single clients.
‘As before, we are aware that there remains a risk that TUPE may apply when KPMG
wins work from a competitor,’ according to Eddie Donaldson, head of UK human
resources at KPMG.

‘However, in reality it is unlikely as in most cases employees are organised
in such a manner that they will not be impacted by the regulations.’

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer