The Transfer of Undertakings (Protection of Employment) Regulations (TUPE) are intended to protect employees against changes to their contracts or being dismissed when their employer changes. They can apply on privatisation, when a business is sold, or a service is contracted out. 

New regulations reduce this protection from today. The new law:

• creates uncertainty about when TUPE applies
• makes it easier for employers to change terms and conditions after transfer, and
• reduces consultation periods for redundancies.

Frances O’Grady, TUC general secretary, said: “Watering down TUPE law means hundreds of thousands of vulnerable workers around the UK will lose out on vital protections at work. This is a deliberate bid by government to make privatisation cheaper and quicker.”

Many Prospect members have lived through the uncertainty and disruption of TUPE. The changes will make the situation much worse. After a period of relative stability following the improved regulations in 2006, the new rules upset this.

The government’s decision to allow employers to seek to renegotiate terms that derive from collective agreements after one year is particularly worrying.

While changes can only be by agreement and the overall package must be no worse, this still leaves scope for significant reduction in terms.

Marion Scovell, Prospect legal officer, said: “It is likely that some of the changes will not be compatible with the EU Directive. New TUPE is worse for employees and demonstrates yet again how workers need unions to fight for their rights.”

A briefing note for Prospect members gives more detail on the changes.