TUPE consultation paper finally published

United Kingdom
On Monday 10th September the Government finally published its long awaited consultation paper on the new TUPE regulations. The changes implement the 1998 revised Acquired Rights Directive and are intended make the process of business restructuring less threatening for employees and smoother to operate for employers.

The main proposals in the consultation paper include:

  • options for new rules clarifying the scope of when the TUPE regulations will apply, especially within public administration and in cases where services are contracted out

  • proposals for better protection of employees' occupational pension rights, striking a balance between protecting pension rights and minimising the burden on employers

  • greater flexibility when applying the regulations to transfers of insolvent businesses, to make it more attractive for potential buyers to rescue those businesses

  • better guidance for both employers and employees on the extent of protection against transfer-related dismissals or changes to terms and conditions (in particular clarifying the ETO defence)

  • a legal requirement for the transferor to give the transferee proper notification about the rights and obligations being transferred.

The consultation paper and a detailed background paper are available from the DTI website www.dti.gov.uk. Responses are required by 15th December 2001.

If you would like further information about the proposed new regulations or have any questions about how TUPE may affect you, please contact Simon Jeffreys on +44(0)20 7367 3421 or by e-mail at simon.jeffreys@cms-cmck.com or Anthony Fincham on +44 (0)20 7367 2783 or by e-mail at anthony.fincham@cms-cmck.com.