All change for TUPE? Not quite...
The government has published its long-awaited response to its consultation on TUPE. After a lot of bluster about removing the parts of TUPE that went beyond the Acquired Rights Directive (referred to as ‘gold plating’) what is changing is less far reaching than expected.
The provisions on ‘service provision change’ (SPC) (which includes outsourcing, insourcing and second-generation outsourcing) will not be repealed. This is largely good news as the existence of SPC offers parties a measure of certainty. The revised regulations are expected to make it clear that pre- and post-SPC transfer activities must be ‘fundamentally or essentially the same’.
Parties will continue to have to provide employee liability information (ELI), but the timescale for making the information available will increase from 14 to 28 days before the transfer. It is important to remember that ELI does not cover all information relevant to transferees and should not replace well-conducted due diligence…
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