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Redundancy & TUPE
 Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE 2006) govern the transfer of an undertaking, or part of one, to another. If a TUPE transfer applies, all terms and conditions of work and continuity of employment are preserved for employees of the entity transferred.
Core changes of TUPE 2006 came into force on in 2006. Did you know the following?
- There is now a more comprehensive application of the regulations to labour-intensive service provision where services are outsourced, insourced or assigned to a new contractor.
- The transferor and transferee are both liable for any failure to inform and consult with the transferring employees.
- Transferors must give the transferee written information about the employees who are to transfer. The Employment Tribunals can award an amount they consider just and equitable with compensation starting at a minimum of £500 for each employee whose information was not provided or was defective.
- Subject to a one year qualifying period, a dismissal will be automatically unfair for a reason connected with the transfer unless it is for an 'economic, technical or organisational' reason.
Like TUPE, redundancy situations can be expected to have an adverse impact on employees’ morale and consequently the health of the business. Handling it correctly is crucial for the individuals involved and the future survival and success of the business.
Problems occur when an employee is told they are ‘made redundant’ when in fact they are being dismissed for some other reason, such as performance. A genuine redundancy only arises when either there has been, or is going to be:
- a cessation of business
- a cessation of business at the employee’s site
- a reduction or cessation of work. Even during expansion, redundancies can occur if specific work is disbanded.
Although an employee must have been employed for a continuous period of two years to claim a statutory redundancy payment, if the redundancy dismissal is not carried out fairly they may make a claim on a number of grounds for which the qualifying period is only one year or less.
If you would like to discuss a TUPE or redundancy issue in confidence, whether you are an employer or an employee, please contact us.
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