The transfer of undertakings and protection of employees (TUPE) has long been a complex legislative arena, with which UK businesses must comply. It can be difficult to understand the regulations and terminology governing TUPE, but it is imperative that organisations do.
TUPE 2006 regulations support the European Acquired Rights Directive and apply to ‘relevant transfers’; a business transfer of a stable economic entity, or a service provision change.
The purpose of TUPE is to provide employee protection, in the event that the business with which the individual is employed, changes hands. The employee has a legal right to transfer their employment contract terms and employment rights, to the new organisation. This concept means that the employee may be able to pursue a claim against the inheriting business, for unfair dismissal, redundancy, unpaid wages, bonuses, holidays and discrimination.
Because TUPE relates to a significant number of business transactions it is important, as an employer, to have a comprehensive grasp of when TUPE applies, what the legal obligations are, what constitutes compliance, what the penalties are when failing to comply, and what steps to take to protect your organisation.
In cementing your knowledge of TUPE it is important, as always, to utilise the library of helpful resources available within the profession; we would recommend you refer to the CIPD’s TUPE FAQs and factsheet. The CIPD’s Autumn 2012 Law on Tour is also scheduled to cover recent and forthcoming TUPE changes. A series of workshops have been organised throughout the country, beginning in Leeds on 2 October. Click here to find out more.
Furthermore, consider what added value your technology providers can deliver. Compliantly and effectively managing employees once they have transferred from one company to another will help to ensure your responsibilities, under TUPE, are fulfilled.
At Cascade we echo the CIPD’s efforts to ensure organisations know what their TUPE obligations are, and by its very nature our intelligent software can aid compliance and the fair treatment of staff.
Different profiles can be built to reflect contractual terms of employment with varying levels of sick pay and holiday entitlement for instance, and the software can determine the entitlement profile the employee needs to be managed in accordance with. This is just one other example of how robust and proactive technology can streamline complex and administratively-intensive procedures, helping to alleviating risks, encourage employee satisfaction and promote efficient use of time.
To learn more about how Cascade’s software can support your business activity under TUPE, please call 0113 255 4115 or email email@example.com and we will schedule a one-to-one appointment with one of our HR experts.