1. TUPE OR NOT TUPE? AN OVERVIEW OF THE TUPE REGULATIONS N IGEL C REBBIN PARTNER nigelc@berg.co.uk DD: 0161 817 2817 M: 07967753663 © Berg 2013 Academy Network 10 October 2013

2. TUPE (1) The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) Acquired Rights Directive (No. 2001/23)

3. TUPE (2) First type of transfer: A transfer of an undertaking, business or part of an undertaking or business situated immediately before the transfer in the UK to another person where there is a transfer of an economic entity which retains its identity Economic entity means organised grouping of resources which has the objective of pursuing an economic activity, whether or not that activity is central or ancillary

4. TUPE (3) Second type of transfer: Service provision change (SPC) – whether contracting out, changing contractor or contracting back in – where immediately before the SPC: there is an organised grouping of employees situated in GB which has as its principal purpose the carrying out of the activities on behalf of the client ; the client intends that following the SPC the activities will be carried out by the transferee (other than in connection with a specific event or task of short term duration); and the activities do not consist wholly or mainly of supply of goods for the clients use Note – a share sale is not a TUPE transfer

5. TUPE (4) Who transfers? Employees Employed by the transferor immediately before the transfer Who do not object to the transfer And are assigned to the organised grouping of resources or employees that is subject to the transfer

6. TUPE (5) What transfers? All the transferors rights, powers, duties and liabilities under or in connection with the contract of employment of the transferring employee Any act or omission of or in relation to the transferor before the transfer is completed is deemed to have been an act or omission of or in relation to the transferee Continuity of employment Occupational pension scheme and insolvency exceptions

7. TUPE (6) Automatically unfair dismissal: Where the sole or principal reason for dismissal is the transfer itself; or Where the sole or principal reason for dismissal is a reason connected with the transfer that is not an economic, technical or organisational (ETO) reason entailing changes in the workforce

8. TUPE (7) Information and consultation: Applies to all employees who may be affected by the transfer or may be affected by measures taken in connection with it Trade union representatives if a trade union is recognised in respect of the affected employees Otherwise, representatives appointed or elected by the affected employees

9. TUPE (8) Information to be provided (in writing) by employer: Fact transfer is to take place, date or proposed date of transfer and reason for the transfer Legal, economic and social implications of transfer for any affected employees Measures the employer envisages he/she will take in connection with the transfer in relation to any affected employees (or statement that no such measures envisaged) If employer is transferor, measures he/she envisages the transferee will take in connection with the transfer in relation to any affected employees who will become employees of the transferee (or statement that no such measures envisaged) To be provided long enough before transfer so as to enable consultation with the representatives to take place

10. TUPE (9) Consultation Employer of an affected employee who envisages taking measures in relation to an affected employee in connection with the transfer shall consult appropriate representatives of that employee with a view to seeking agreement to the intended measures

11. TUPE (10) Information and consultation: Special circumstances which render it not reasonably practicable Penalty for failure – up to 13 weeks pay, uncapped Joint and several liability of transferor and transferee

12. TUPE (11) Employee liability information To be provided in writing at least 14 days before transfer unless not reasonably practicable Penalty £500 per employee (unless lesser sum would be just and equitable) and more if loss can be demonstrated

13. TUPE (12) Restriction on varying employment contracts Economic, technical or organisational (ETO) reason entailing changes in the workforce

14. TUPE Disclaimer: The laws in relation to the matters discussed in this presentation are complex. Neither the presentation itself nor any accompanying slides and handouts constitute legal advice and full legal advice should always be taken before acting.

15. TUPE OR NOT TUPE? AN OVERVIEW OF THE TUPE REGULATIONS N IGEL C REBBIN PARTNER nigelc@berg.co.uk DD: 0161 817 2817 M: 07967753663 © Berg 2013 Academy Network 10 October 2013