Rethinking TUPE: practical challenges and opportunities for reform
We’ve recently shared our views with Government as part of its call for evidence on TUPE reform, drawing on our clients’ experience working with TUPE on the ground and our experience advising on transactions across a broad range of contexts and sectors, and on litigation where things go wrong.
Our aim is simple: show where the rules aren’t working and suggest practical changes that reflect how businesses operate today.
What we told Government
We focused on a handful of areas where change would make a real difference:
- Removing unnecessary complexity in property transactions
- Addressing gaps and inconsistencies that create uncertainty in real estate deals.
- Improving consultation processes
- Moving away from a ‘tick-box’ exercise towards more meaningful engagement with employees in practice.
- Allowing greater flexibility to align terms post-transfer.
- Giving businesses more scope to integrate workforces effectively, while maintaining appropriate employee protections.
- Simplifying rules for intra-group reorganisations
- Introducing a more proportionate regime where there is little or no practical impact on employees.
What this means for clients
From what we see day to day, TUPE still creates real challenges in live transactions.
The rules can be hard to navigate. Questions often arise around when TUPE applies (and who transfers), how consultation should work, and what changes you can make after transfer. This can slow deals down, increase costs and, at times, force decisions based on risk rather than clarity.
The changes we’ve proposed address these issues head-on and if adopted, would make TUPE clearer, more predictable and easier to operate in practice – better aligned with how modern businesses run and better suited to supporting employees’ needs in practice.
This matters most if you’re involved in M&A, outsourcing or group restructurings, where TUPE is often critical – or, of course, if you are “TUPE’ed” to a new employer yourself.
Get in touch
If you have a question on TUPE or would like to hear more about our reform proposals and what they could mean for you or your business, reach out to our team, here.
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