ŝƐ EĂƟŽŶĂů ŽŽƌĚŝŶĂƚŽƌ ĨŽƌ dƌĂĚĞ hŶŝŽŶ >Ăǁ 'ƌŽƵƉ ^ƚƌĂƚĞŐLJ Ăƚ dŚŽŵƉƐŽŶƐ ^ŽůŝĐŝƚŽƌƐ >>W͘ ,Ğ ĂĚǀŝƐĞƐ ŵĂŶLJ ƚƌĂĚĞ ƵŶŝŽŶƐ Ăƚ ŶĂƟŽŶĂů ůĞǀĞů ŽŶ ĐŽůůĞĐƟǀĞ ůĂďŽƵƌ ůĂǁ ŝƐƐƵĞƐ ŝŶĐůƵĚŝŶŐ ŝŶĚƵƐƚƌŝĂů ĂĐƟŽŶ͕ ƚƌĂĚĞ ƵŶŝŽŶ ƌĞĐŽŐŶŝƟŽŶ͕ ƵŶŝŽŶ ŐŽǀĞƌŶĂŶĐĞ ĂŶĚ dhW ͘ ,Ğ ŚĂƐ Ă ƉĂƌƟĐƵůĂƌ ŝŶƚĞƌĞƐƚ ŝŶ ƚŚĞ ƉƵďůŝĐ͕ h ĂŶĚ ŝŶƚĞƌŶĂƟŽŶĂů ůĂǁ ĂƐƉĞĐƚƐ ŽĨ ĐŽůůĞĐƟǀĞ ůĂďŽƵƌ ƌŝŐŚƚƐ͘ ,Ğ ŚĂƐ ƌĞƉƌĞƐĞŶƚĞĚ ƚƌĂĚĞ ƵŶŝŽŶƐ ĂŶĚ ƚŚĞŝƌ ŵĞŵďĞƌƐ ŝŶ ŵĂŶLJ ŽĨ ƚŚĞ ůĞĂĚŝŶŐ ĐĂƐĞƐ ŝŶ ĐŽůůĞĐƟǀĞ ůĂďŽƵƌ ůĂǁ ŝŶ ƚŚĞ ůĂƐƚ ĚĞĐĂĚĞ͘
/^ E ϵϳϴͲϭͲϵϬϲϳϬϯͲϮϰͲϬ :ƵŶĞ ϮϬϭϰ ƉƵďůŝƐŚĞĚ ďLJ ƚŚĞ /ŶƐƟƚƵƚĞ ŽĨ ŵƉůŽLJŵĞŶƚ ZŝŐŚƚƐ ϰƚŚ &ůŽŽƌ͕ :ĂĐŬ :ŽŶĞƐ ,ŽƵƐĞ͕ ϭ /ƐůŝŶŐƚŽŶ͕ >ŝǀĞƌƉŽŽů͕ >ϯ ϴ ' ĞͲŵĂŝů ŽĸĐĞΛŝĞƌ͘ŽƌŐ͘ƵŬ ǁǁǁ͘ŝĞƌ͘ŽƌŐ͘ƵŬ ĞƐŝŐŶ ĂŶĚ ůĂLJŽƵƚ ďLJ hƉƐƚƌĞĂŵ ;dhͿ ǁǁǁ͘ƵƉƐƚƌĞĂŵ͘ĐŽŽƉ WƌŝŶƚĞĚ ďLJ dŚĞ ZƵƐƐĞůů WƌĞƐƐ ;ǁǁǁ͘ ƌƵƐƐĞůůƉƌĞƐƐ͘ĐŽŵͿ άϭϬ ĨŽƌ ƚƌĂĚĞ ƵŶŝŽŶƐ ĂŶĚ ƐƚƵĚĞŶƚƐ άϰϬ ŽƚŚĞƌƐ
ŝƐ ƚŚĞ ƉƌŝŶĐŝƉĂů ŽĨ tĂůŬĞƌƐ ^ŽůŝĐŝƚŽƌƐ͕ Ă ƐƉĞĐŝĂůŝƐƚ ƉƌĂĐƟĐĞ ĚĞĂůŝŶŐ ǁŝƚŚ ƉĞŶƐŝŽŶƐ ůĂǁ͘ ,Ğ ŚĂƐ ĂĚǀŝƐĞĚ ƚƌĂĚĞ ƵŶŝŽŶƐ ŽŶ ƉĞŶƐŝŽŶƐ ŝƐƐƵĞƐ ĨŽƌ ŵŽƌĞ ƚŚĂŶ Ϯϱ LJĞĂƌƐ͕ ĂŶĚ ĂĐƚĞĚ ĨŽƌ ƚƌĂĚĞ ƵŶŝŽŶƐ ĂŶĚ ƚŚĞŝƌ ŵĞŵďĞƌƐ ŝŶ ŵĂŶLJ ŽĨ ƚŚĞ ůĞĂĚŝŶŐ ĐĂƐĞƐ ŽŶ ƚŚĞ ƐƵďũĞĐƚ͘ /ǀĂŶ ŬŝŶĚůLJ ĐŽŶƚƌŝďƵƚĞĚ ƚŽ ƚŚŝƐ ƉƵďůŝĐĂƟŽŶ ďLJ ǁƌŝƟŶŐ ƚŚĞ ĐŚĂƉƚĞƌ ŽŶ ƉĞŶƐŝŽŶƐ͘
dŚŝƐ ƉƵďůŝĐĂƟŽŶ͕ ůŝŬĞ Ăůů ƉƵďůŝĐĂƟŽŶƐ ŽĨ ƚŚĞ /ŶƐƟƚƵƚĞ͕ ƌĞƉƌĞƐĞŶƚƐ ŶŽƚ ƚŚĞ ĐŽůůĞĐƟǀĞ ǀŝĞǁƐ ŽĨ ƚŚĞ /ŶƐƟƚƵƚĞ ďƵƚ ŽŶůLJ ƚŚĞ ǀŝĞǁƐ ŽĨ ƚŚĞ ĂƵƚŚŽƌƐ͘ dŚĞ ƌĞƐƉŽŶƐŝďŝůŝƚLJ ŽĨ ƚŚĞ /ŶƐƟƚƵƚĞ ŝƐ ůŝŵŝƚĞĚ ƚŽ ĂƉƉƌŽǀŝŶŐ ŝƚƐ ƉƵďůŝĐĂƟŽŶƐ ĂƐ ǁŽƌƚŚLJ ŽĨ ĐŽŶƐŝĚĞƌĂƟŽŶ ǁŝƚŚŝŶ ƚŚĞ ůĂďŽƵƌ ŵŽǀĞŵĞŶƚ͘
ZĞƐŝƐƟŶŐ ͚hŶŝŽŶͲ ƵƐƟŶŐ͛ ĂŶĚ ͚^ƚƌŝŬĞͲ ƌĞĂŬŝŶŐ͛ ŝŶ ƚŚĞ ŝƐƉƵƚĞ
dhW ϮϬϭϰ
contents
CHAPTER ONE
executive summary
1
CHAPTER TWO
setting the scene sources interpreting TUPE policy
4 4 7 8
CHAPTER THREE
when does tupe apply?
10
requirement of a change of employer and share sales the form of the transfer, and transfers overseas standard transfers
11 13 14
the ‘economic entity’ the economic entity must ‘retain its identity’ public and private undertakings whether or not they are operating for gain transfers involving the administrative reorganisation of public administrative authorities
14 15
service provision changes carrying out ‘activities’ ‘an organised grouping of employees…’ ‘…other than in connection with a single specific event or task of short-term duration…’ ‘…supply of goods…’ the 2013 consultation
19 19
21 21 24 24 25 25
CHAPTER FOUR
who does tupe apply to? ‘employees’ ‘assignment to the organised grouping of assets or employees’
28 28 29
objecting to the transfer objections and implications for secondment
31 32
CHAPTER FIVE
what transfers? transferring obligations provisions incorporated from collective agreements
34 34 37
CHAPTER SIX
variations to terms and conditions permitted variations an example: The Manchester College v Hazel terms derived from collective agreements
41 42 45 46
CHAPTER SEVEN
dismissals dismissals and substantial change in working conditions to the employee’s material detriment automatically unfair dismissals economic, technical or organisational reasons entailing changes in the workforce (‘ETO’) remedies
48 49 50 51 54
CHAPTER EIGHT
insolvency classification of insolvency proceedings in the UK terminal insolvency proceedings non-terminal insolvency proceedings
56 57 58 58
CHAPTER NINE !
employee liability information
60
CHAPTER TEN
information and consultation the ‘appropriate representatives’ and ‘employee representatives’ the ‘affected employees’ ‘information’ ‘consultation’ ‘special circumstances’ remedies pre-transfer collective redundancy consultation
62 62 63 64 66 67 68 70
CHAPTER ELEVEN
tupe and pension rights (by Ivan Walker) the exception for pension rights protection of accrued rights accrued rights: defined contribution (DC) benefits accrued rights: defined-benefit (DB) benefits death benefits transferring pension rights
future service rights group personal pensions (GPPs) occupational pension schemes
73 73 74 74 75 76 76
77 78 78
the exception to the exception: redundancy and other early retirement rights future service rights in the public sector
80 82
central government, the nhs, maintained schools and academies: fair deal new fair deal local government
82 84 84
CHAPTER TWELVE
conclusions
86
endnotes
89
"
CHAPTER ONE
executive summary dhW ͕ ĮƌƐƚ ŝŶƚƌŽĚƵĐĞĚ ŝŶ ϭϵϴϭ ƚŽ ŝŵƉůĞŵĞŶƚ ƚŚĞ h ĐƋƵŝƌĞĚ ZŝŐŚƚƐ ŝƌĞĐƟǀĞ ŝŶ ƚŚĞ hŶŝƚĞĚ <ŝŶŐĚŽŵ͕ ƉƌŽǀŝĚĞƐ ƐŽŵĞ ƉƌŽƚĞĐƟŽŶ ŽŶ ƚŚĞ ƚƌĂŶƐĨĞƌ ŽĨ ƚŚĞ ƵŶĚĞƌƚĂŬŝŶŐ ŝŶ ǁŚŝĐŚ ƚŚĞ ĞŵƉůŽLJĞĞ ǁŽƌŬƐ͘ dŚĞ ŵĂŝŶ ƉƌŽƚĞĐƟŽŶƐ ĂƌĞ͗ ;ŝͿ ƚŚĞ ĂƵƚŽŵĂƟĐ ƚƌĂŶƐĨĞƌ ŽĨ ĞŵƉůŽLJŵĞŶƚ ĂŶĚ ĂƐƐŽĐŝĂƚĞĚ ƌŝŐŚƚƐ ĂŶĚ ůŝĂďŝůŝƟĞƐ͖ ;ŝŝͿ ƐĂĨĞŐƵĂƌĚƐ ĂŐĂŝŶƐƚ ĚŝƐŵŝƐƐĂů͕ ĂŶĚ ĐŚĂŶŐĞƐ ƚŽ ƚĞƌŵƐ ĂŶĚ ĐŽŶĚŝƟŽŶƐ͖ ĂŶĚ ;ŝŝŝͿ ŝŶĨŽƌŵĂƟŽŶ ĂŶĚ ĐŽŶƐƵůƚĂƟŽŶ ƌŝŐŚƚƐ͘ dŚĞƐĞ ƉƌŽƚĞĐƟŽŶƐ ĂƌĞ ƌĞůĂdžĞĚ ŝŶ ƚŚĞ ĞǀĞŶƚ ŽĨ ŝŶƐŽůǀĞŶĐLJ͕ ĂŶĚ ƉĞŶƐŝŽŶ ƌŝŐŚƚƐ ĂƌĞ ;ŝŶ ƚŚĞ ŵĂŝŶͿ ĞdžĐůƵĚĞĚ ĨƌŽŵ ƚƌĂŶƐĨĞƌ͘ /ŶĐŽŵŝŶŐ ĞŵƉůŽLJĞƌƐ ŚĂǀĞ Ă ƌŝŐŚƚ ƚŽ ďĞ ƉƌŽǀŝĚĞĚ ǁŝƚŚ ŝŶĨŽƌŵĂƟŽŶ ĂďŽƵƚ ƚŚĞ ƚƌĂŶƐĨĞƌƌŝŶŐ ǁŽƌŬĨŽƌĐĞ͘ ^ŝŶĐĞ ƚŚĞ ĞĂƌůLJ ϭϵϵϬƐ͕ dhW ŚĂƐ ďĞĞŶ ĐĂƉĂďůĞ ŽĨ ĂƉƉůLJŝŶŐ ƚŽ ƵŶĚĞƌƚĂŬŝŶŐƐ ǁŚĞƚŚĞƌ Žƌ ŶŽƚ ƚŚĞLJ ĂƌĞ ŽƉĞƌĂƚĞĚ ĨŽƌ ƉƌŽĮƚ͕ ĂŶĚ ;ƐƵďũĞĐƚ ƚŽ ŽŶĞ ƐƉĞĐŝĮĐ ĞdžĐĞƉƟŽŶͿ ƚŽ ƚƌĂŶƐĨĞƌƐ ƚŽ ĂŶĚ ĨƌŽŵ ƚŚĞ ƉƵďůŝĐ ĂŶĚ ƉƌŝǀĂƚĞ ƐĞĐƚŽƌƐ͘ dŚĞ ƉĞƌŝŽĚ ƐŝŶĐĞ ϭϵϴϭ ŚĂƐ ƐĞĞŶ ƚŚĞ ƉƌŽůŝĨĞƌĂƟŽŶ ŽĨ ƉƌŝǀĂƟƐĂƟŽŶ ĂŶĚ ĐŽŶƚƌĂĐƟŶŐ ŽƵƚ͕ ǁŝƚŚ Ă ĚŽŵŝŶĂŶƚ ƚŚĞŵĞ ĂŵŽŶŐƐƚ ŝŶĐŽŵŝŶŐ ŽƉĞƌĂƚŽƌƐ ďĞŝŶŐ Ă ĚĞƐŝƌĞ ƚŽ ƌĞĚƵĐĞ ǁĂŐĞƐ ĂŶĚ ŽƚŚĞƌ ǁŽƌŬĨŽƌĐĞ ƌĞůĂƚĞĚ ĐŽƐƚƐ͘ tŝƚŚŽƵƚ dhW ŝŶ ƚŚĞ hŶŝƚĞĚ <ŝŶŐĚŽŵ͕ ƚŚĞ ƚƌĂŶƐĨĞƌ ŽĨ ƚŚĞ ƵŶĚĞƌƚĂŬŝŶŐ ǁŽƵůĚ ƚĞƌŵŝŶĂƚĞ ƚŚĞ ĞŵƉůŽLJŵĞŶƚ ƌĞůĂƟŽŶƐŚŝƉ͕ ĂŶĚ ƚŚĞ ŝŶĐŽŵŝŶŐ ŽƉĞƌĂƚŽƌ ǁŽƵůĚ ďĞ ĨƌĞĞ ƚŽ ĞŶŐĂŐĞ ŝƚƐ ŽǁŶ ǁŽƌŬĨŽƌĐĞ͕ ŽŶ ƚĞƌŵƐ ŽĨ ŝƚƐ ĐŚŽŽƐŝŶŐ͘ &Žƌ ƚŚŽƐĞ ŝŶ ƚŚĞ ďƵƐŝŶĞƐƐ ŽĨ ƐĞĞŬŝŶŐ ƉƌŽĮƚ ĨƌŽŵ ƉƌŝǀĂƟƐĂƟŽŶ ĂŶĚ ŽƵƚƐŽƵƌĐŝŶŐ͕ dhW ŚĂƐ ƚŚĞƌĞĨŽƌĞ ŽŌĞŶ ďĞĞŶ ǀŝĞǁĞĚ ĂƐ Ă ďĂƌƌŝĞƌ ƚŽ ƚŚĞ ĨƵƌƚŚĞƌĂŶĐĞ ŽĨ ĐŽŵŵĞƌĐŝĂů ŝŶƚĞƌĞƐƚƐ͘ &Žƌ ƚŚŝƐ ƌĞĂƐŽŶ͕ ƚŚĞ ĐŝƌĐƵŵƐƚĂŶĐĞƐ ŝŶ ǁŚŝĐŚ dhW ĂƉƉůŝĞƐ͕ ƉĂƌƟĐƵůĂƌůLJ ŝŶ ƚŚĞ ĐŽŶƚĞdžƚ ŽĨ ŽƵƚƐŽƵƌĐŝŶŐ͕ ǁĂƐ͕ ƉƌŝŽƌ ƚŽ ϮϬϬϲ͕ ŽŶĞ ŽĨ ƚŚĞ ŵŽƐƚ ŚŽƚůLJ ĐŽŶƚĞƐƚĞĚ ĂƌĞĂƐ ŽĨ ĞŵƉůŽLJŵĞŶƚ ůĂǁ͘ dhW ƚŚĞŶ ŽŶůLJ ĂƉƉůŝĞĚ ŝŶ ƚŚĞ ĐŝƌĐƵŵƐƚĂŶĐĞ ŽĨ ͚^ƚĂŶĚĂƌĚ dƌĂŶƐĨĞƌƐ͕͛ ĂƐ ƉƌŽǀŝĚĞĚ ďLJ ƚŚĞ ŝƌĞĐƟǀĞ͕ ĂŶĚ͕ ĨƵĞůůĞĚ ďLJ ƉĞƌĐĞŝǀĞĚ ĐŚĂŶŐĞƐ ŝŶ ĚŝƌĞĐƟŽŶ ŝŶ ƚŚĞ ƵƌŽƉĞĂŶ ĐĂƐĞ ůĂǁ͕ ƚŚĞƌĞ ǁĂƐ ƵŶĐĞƌƚĂŝŶƚLJ ĂƐ ƚŽ ŚŽǁ ĨĂƌ ŽƵƚƐŽƵƌĐŝŶŐ ǁĂƐ ĐŽǀĞƌĞĚ͘ &ŽůůŽǁŝŶŐ ŝƚƐ ƌĞǀŝĞǁ͕ ƚŚĞ >ĂďŽƵƌ 'ŽǀĞƌŶŵĞŶƚ ŝŶ ϮϬϬϲ ŝŶƚƌŽĚƵĐĞĚ ƚŚĞ ĐŽŶĐĞƉƚ ŽĨ ͚^ĞƌǀŝĐĞ WƌŽǀŝƐŝŽŶ ŚĂŶŐĞƐ͕͛ Ă ƉƌŽǀŝƐŝŽŶ ƵŶŝƋƵĞ ƚŽ ƚŚĞ
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dŚĞ /ŶƐƟƚƵƚĞ ŽĨ ŵƉůŽLJŵĞŶƚ ZŝŐŚƚƐ ϰƚŚ &ůŽŽƌ :ĂĐŬ :ŽŶĞƐ ,ŽƵƐĞ ϭ /ƐůŝŶŐƚŽŶ >ŝǀĞƌƉŽŽů͕ >ϯ ϴ ' dĞů͗ Ϭϭϱϭ ϮϬϳ ϱϮϲϱ ŵĂŝů͗ ŽĸĐĞΛŝĞƌ͘ŽƌŐ͘ƵŬ dǁŝƩĞƌ͗ ΛŝĞƌƵŬ
Ɛ ƚŚĞ ĂƵƚŚŽƌ ŽĨ ƚŚŝƐ ƟŵĞůLJ ƌĞƉŽƌƚ ŶŽƚĞƐ͕ ͚dŚĞ ƉĞƌŝŽĚ ƐŝŶĐĞ ϭϵϴϭ ŚĂƐ ƐĞĞŶ ƚŚĞ ƉƌŽůŝĨĞƌĂƟŽŶ ŽĨ ƉƌŝǀĂƟƐĂƟŽŶ ĂŶĚ ĐŽŶƚƌĂĐƟŶŐ ŽƵƚ͕ ǁŝƚŚ Ă ĚŽŵŝŶĂŶƚ ƚŚĞŵĞ 4
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ďĂĐŬŐƌŽƵŶĚ͕ dhW ŚĂƐ ƚƌĂĚŝƟŽŶĂůůLJ ƉƌŽǀŝĚĞĚ ĞƐƐĞŶƟĂů ƉƌŽƚĞĐƟŽŶƐ ĨŽƌ ǁŽƌŬĞƌƐ͘ Ƶƚ ŚŽǁ ĞīĞĐƟǀĞ ĂƌĞ ƚŚŽƐĞ ƉƌŽƚĞĐƟŽŶƐ ĨŽůůŽǁŝŶŐ ĐŚĂŶŐĞƐ ŝŶƚƌŽĚƵĐĞĚ ŝŶ :ĂŶƵĂƌLJ ϮϬϭϰ͍ dŚŝƐ ƉƵďůŝĐĂƟŽŶ ŐƵŝĚĞƐ ƚŚĞ ƌĞĂĚĞƌ ƚŚƌŽƵŐŚ ƚŚŽƐĞ ĐŚĂŶŐĞƐ ŝŶ ƐŽŵĞ ĚĞƚĂŝů͕ ǁŝƚŚ ƌĞĨĞƌĞŶĐĞ ƚŽ ůĞĂĚŝŶŐ ĐĂƐĞƐ ďŽƚŚ ŝŶ ƚŚĞ h< ĂŶĚ ŝŶ ƵƌŽƉĞ͘ /ƚ ĐŽŶƐŝĚĞƌƐ ƚŚĞ ŝŵƉůŝĐĂƟŽŶƐ ĂŶĚ ůŝŬĞůLJ ŝŵƉĂĐƚ ŽĨ ƚŚĞ ŶĞǁ ůĂǁƐ ĂŶĚ ƚŚĞ ĂďŝůŝƚLJ ŽĨ ĞŵƉůŽLJĞƌƐ ƚŽ ĐŚĂŶŐĞ ƚĞƌŵƐ ĚĞƌŝǀĞĚ ĨƌŽŵ ĐŽůůĞĐƟǀĞ ĂŐƌĞĞŵĞŶƚƐ͘ ZŝĐŚĂƌĚ ƌƚŚƵƌ ƉůĂĐĞƐ ƚŚĞ ƵƉĚĂƚĞĚ ϮϬϭϰ ZĞŐƵůĂƟŽŶƐ ŝŶƚŽ Ă ƉŽůŝƟĐĂů ĐŽŶƚĞdžƚ͘ ,Ğ ŶŽƚĞƐ ƚŚĂƚ ŐŽǀĞƌŶŵĞŶƚ ƉůĂŶƐ ƚŽ ĨƵƌƚŚĞƌ ǁĞĂŬĞŶ dhW ƉƌŽƚĞĐƟŽŶƐ ǁĞƌĞ ƚŚǁĂƌƚĞĚ͕ ďƵƚ ĞdžƉƌĞƐƐĞƐ ĐŽŶĐĞƌŶ Ăƚ ƌĞĐĞŶƚ ƵƌŽƉĞĂŶ ĐŽƵƌƚ ĚĞĐŝƐŝŽŶƐ͘ ,Ğ ƌĞŵŝŶĚƐ ƌĞĂĚĞƌƐ ƚŚĂƚ ƚŚĞ ŝŶƚĞŶƟŽŶ ŽĨ ƚŚĞ ŽƌŝŐŝŶĂů ŝƌĞĐƟǀĞ ǁĂƐ ͚ƵŶŝůĂƚĞƌĂůůLJ ƚŚĞ ƉƌŽƚĞĐƟŽŶ ŽĨ ǁŽƌŬĞƌƐ͛͘ Ƶƚ ƌĞĐĞŶƚ ŝŶƚĞƌƉƌĞƚĂƟŽŶƐ ďLJ ƚŚĞ ŽƵƌƚ ŽĨ :ƵƐƟĐĞ ĨŽĐƵƐ ŽŶ ƚŚĞ ŶĞĞĚ ĨŽƌ Ă ͚ĨĂŝƌ ďĂůĂŶĐĞ͛ ďĞƚǁĞĞŶ ǁŽƌŬĞƌƐ͛ ĂŶĚ ĞŵƉůŽLJĞƌƐ͛ ŝŶƚĞƌĞƐƚƐ͕ ƐƵŐŐĞƐƟŶŐ ƚŚĂƚ ƐŽĐŝĂů ƌŝŐŚƚƐ ĂƌĞ ďĞŝŶŐ ƐƵďŽƌĚŝŶĂƚĞĚ ƚŽ ĞĐŽŶŽŵŝĐ ƌŝŐŚƚƐ͘
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