The Transfer of Undertakings (Protection of Employment) regulations can be a minefield for even seasoned professionals.
The biggest issue to resolve is whether a transfer of business is covered under a TUPE transfer or not; even current legislation and case study so far still leaves a murky porthole to decide if a TUPE situation exists.
TUPE was introduced to protect employees when the work they carry out was being transferred from one contractor to another. Its primary purpose was to ensure that the new contractor did not provide lesser terms and conditions or that the employees themselves were not directly replaced by cheaper labour.
Whilst morally and ethically this is correct; there are many other situations where TUPE is not the desired action – the transferor is likely to have a strong business need to reduce their overall headcount and costs and the transferee may have no desire to increase their staff – this is often the case when outsourcing professional services.
An example of where TUPE will almost certainly apply is the changing from one cleaning contractor to another; of from one security company to another.
If the contract is being removed from one provider and being placed with another single contractor, then the people who perform the role must be transferred with the contract on the terms and conditions that they currently receive.
Once that is established that employees will be covered under TUP regulations, there are duties and obligations that both the transferor and transferee have to meet.
There may be many issues that need addressing, terms and conditions from one to the other; potential redundancy situations, cultural differences between organisations that require attention.
It is advisable to appoint a Project Manager to develop and deliver the plan to successfully handle the transfer from one to the other. The Project Manager should be familiar with TUPE regulations, the requirements and potential risks and alternative actions.
Alternatively, if you are outsourcing and wish to avoid a TUPE situation there are some actions you can take to minimise your exposure.
Don’t try to go it alone, let solved hr work with you in managing those difficult situations, questions and changeovers.
For further information on how we can assist you with potential TUPE situations or help with managing a TUPE transfer, contact us on 077147 90024 or email on email@example.com