On 16 Might 2024, the UK authorities launched a session paper setting out proposed amendments to the Switch of Undertakings (Safety of Employment) Rules 2006 (TUPE) and abolishing the authorized framework for European Works Councils (EWCs). This follows the coverage paper printed in Might 2023, “Smarter regulation to develop the economic system”. Regardless of the overall election and the dissolution of Parliament, the session stays open. It stays to be seen what is going to occur on account of any common election.
TUPE
The brand new session proposes to:
- Make clear the scope of TUPE to restrict the provisions of TUPE to “workers” and to particularly state that staff don’t fall inside scope. Though TUPE refers to “workers”, the definition was solid into doubt by the case of Dewhurst v Revisecatch Ltd (t/a Ecourier) by which the Employment Tribunal held that staff satisfying the broader definition in part 230(3)(b) Employment Rights Act 1996 are inside the scope of TUPE and never simply to workers. This choice isn’t binding however the Authorities goals to take away the confusion and make clear the place.
- Make clear that an employment contract might solely be transferred to 1 employer and is probably not cut up between a number of transferee employers. The choice of the European Courtroom of Justice in ISS Facility Providers NV v Govaerts held {that a} transferring worker’s employment contract might be cut up between the transferees into quite a few part-time employment contracts. This may usually be tough for events to impact in apply. The session seeks to make clear that the place ought to be that the employers taking on the enterprise or service could be required to agree who ought to be liable for every worker’s contract.
These proposals are along with modifications to TUPE made by the Employment Rights (Modification, Revocation and Transitional Provision) Rules 2023, which apply to TUPE transfers going down on or after 1 July 2024. These modifications take away the requirement to elect worker representatives for workers with fewer than 50 workers or workers of any measurement concerned within the switch of fewer than ten workers.
EWCs
The session additionally proposes repealing the present authorized framework for EWCs within the UK, which would come with a repeal of the present requirement that in-scope multinational companies preserve legacy EWCs. After Brexit new EWCs weren’t fashioned within the UK, however those who presently existed have been maintained.
The session closes on 11 July 2024. As talked about the session is progressing and what occurs by way of the proposals will rely upon the outcomes of the election. The Labour celebration is proposing to strengthen the protections for all staff with regard to TUPE and so it will appear unlikely that they might proceed with the primary clarification.