Last week we blogged about the expansion of the Red Tape Regulation freeze, this now covers SME’s with less than 50 employees. Now under the Employment Law overhaul it is expected that TUPE regulations will be included under this “freeze”.
Under current regulations, if a business if bought over, all the employees are protected under TUPE regulations, meaning you inherit the businesses existing team , whether you want them or not!
However, these new rules (which are expected to come into effect in October) will give employers greater freedom to avoid these laws. Due to the current TUPE law, small businesses are often put off bidding on a company as they are often stuck with expensive employees, and the unseen liabilities that go with them.
Although this may be good news for the successful business this could cause great concern to the outsourced business partner and their employees. Many employers are asking for the government to produce further guidance so that employers know where they stand.
We must also remember though that these rules are still open to interpretation in a court of law and you may still have to battle this out at a tribunal.
Give us a call for more information on how this will work for you.