How imminent changes to TUPE could reduce the cost of your supply chain
As most retailers will testify, managing the risks and costs associated with TUPE can be a real problem when making changes to supply chains. As the law currently stands, a change of supplier or service provider will usually trigger the application of TUPE. The main effect of this being that the relevant employees (generally speaking, those who are engaged in providing the work that is the subject of the transaction) will transfer to the incoming supplier or service provider on their existing terms and conditions. Not only does this mean additional overheads for the incoming provider, but it quite often works against the business’s primary reason for wanting to change the service provider in the first instance — in other words, the fact that the people delivering the service are not providing the required quality.
Moreover, an incoming supplier will often wish to provide the services in a different way or from a different location. A significant change of location usually means that the employees are redundant, giving rise to redundancy and notice pay costs. In addition, the way in which TUPE currently works means that such geographically induced redundancies would be automatically unfair dismissals as well. This would mean additional costs for compensation for unfair dismissal (of up to £74,200 per employee). These costs are often significant and the costs, one way or another, will find their way into the price being quoted for the proposed new contractor (that new contractor being most vulnerable to these risks and costs)…
If you are registered and logged in to the site, click on the link below to read the rest of the Walker Morris briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
What do you do when you take possession of a house and the former occupier has left various items of theirs behind?
Equity of exoneration — joint mortgagors do not necessarily have joint responsibility for the secured debt
It is a not uncommon situation — the family home is jointly mortgaged to secure the debts of a family member’s business.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.