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Beecroft Report – is this the beginning of the end for onerous TUPE regulations?

23 May 2012

Adrian Beecroft’s report on proposed changes to employment law has been released early following a leak.

Among the numerous changes to employment legislation that is proposed by Beecroft, his recommendations on the amendment of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE”) may be of the most interest to employers. TUPE is based on an EU Directive, and Beecroft writes that the UK’s implementation has led to a “gold plating” of the Directive which is absent in other European countries’ national legislation.

Beecroft recommends that:

  • employers should be allowed to harmonise the terms and conditions of transferred and original employees after one year;
  • a more detailed explanation of the ETO exemption should be provided; and
  • service provider provisions should be replaced by a better way of identifying whether a transfer is subject to TUPE.
  • Employers can find the prescriptive obligations imposed by TUPE a real deterrent to growth, and the progress of these
recommendations will be followed with interest.

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