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TUPE amendments - certainty or not

31 January 2014

The much anticipated regulations amending TUPE come into force today. Many employers had hoped that the changes would provide much greater freedom and certainty for employers to harmonise terms following a TUPE transfer.

The new regulations do include provisions allowing employers to seek to make changes to a contract following a TUPE transfer. However, the circumstances in which changes can be made are subject to a number of significant restrictions. Variations will generally be void if the sole or principal reason for the variation is the transfer. However, there are some specific situations set out in the regulations where such a variation may be valid if particular conditions are met. These conditions will not be met in many circumstances when an employer may wish to harmonise terms.

Employers should still exercise caution when seeking to make post-transfer changes.

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