PracticeAccounting FirmsGovernment pushes TUPE reform

Government pushes TUPE reform

The legislation that protects employee rights when a business they work for is transferred to a new owner is to be reformed to better serve both employers and employees.

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TUPE – Transfer of Undertakings Protection of Employment – will be reformed so that it gives comprehensive coverage to service contracting operations, such as office cleaning and catering.

Reforms will also ensure that employers are better informed of the rights of their employees and it will improve the way TUPE operates when insolvent companies are sold, so that jobs and other businesses are saved.

New requirements will force an old employer to notify the new employer of the employment liabilities it takes on when the business is transferred. The reforms will also better clarify the circumstances in which employers can lawfully make transfer-related dismissals.

Introducing the reforms, trade secretary Patricia Hewitt said they would ‘support business flexibility and restructuring’ and help ‘take the fear out of transfer’.

Hewitt said new regulations would come into effect in Spring 2004.

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