Final TUPE Reforms Come Into Effect

For transfers taking place on or after 31^st July 2014, the final change impacting on business transfers came into effect. A new Regulation 13A of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) now allows businesses with fewer than 10 employees to consult directly with affected employees in cases where there is no standing body of elected representatives already in place.

This is an important benefit for small businesses as it was previously the case that, irrespective of the size of the employer and number of employees to be consulted with, companies had to go through a detailed implementation and consultation process prior to a transfer taking place. This involved inviting nominations and organising a ballot in order to elect employee representatives. Businesses may now simply approach employees to provide them with the required information directly. Although it is important to note that this does not apply to the number of employees transferred. Therefore, larger employers who may only be consulting with one or two employees will still need to follow the full collective consultation process.