Government proposals for reform of TUPE

The UK government has published a response to the consultation on reform of the TUPE Regulations that it carried out earlier this year. Having taken account of the 178 consultation responses, the reforms that the government is now proposing are considerably less radical than those that it was originally considering.

In particular, there has been a U-turn on the proposals in relation to the service provision change rules, which will not be repealed because ‘the responses to consultation presented a clear rationale for retaining the current rules’.

The key proposals emerging from the response to consultation are as follows. The service provision change rules will not be repealed in view of the certainty that these rules provide to business. The regulations will be amended, however, to reflect the case law approach, namely that for there to be a TUPE service provision change, the activities carried on after the change in service provision must be ‘fundamentally or essentially the same’ as those carried on before it…

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