Tupe changes risk damaging workers’ rights, says TUC

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Changes to the Transfer of Undertakings and Protection of Employment regulations could drive down pay and conditions for workers, the TUC has said.

The Tupe law protects the employment terms and conditions for employees who are transferred from one organisation to another. Under the changes, which came into force on 31 January, businesses will be able to renegotiate terms and conditions in collective agreements one year after a transfer has taken place, provided that the overall change is no less favourable.

Micro businesses will also be able to inform and consult employees directly when there are no existing appropriate representatives. The new employer will be able to engage in pre-redundancy consultation with employees, with the consent of the old employer, and contractual changes will be permitted for economic, technical or organisational reasons with the agreement of the employee and where a contractual right of variation exists.

“Making these changes will give businesses more clarity about conducting transfers and provide them with the tools to create new opportunities in the UK labour market, whilst protecting fairness for all,” said employment relations minister Jenny Willmott.

However, the TUC says the changes will substantially weaken protection for employees and reduce job security. It fears low-paid staff in commonly contracted-out areas will be most at risk.

 “Weakening guarantees on pay and conditions will encourage unscrupulous companies to compete for contracts based solely on low costs and not on the quality of service,” said TUC general secretary Frances O’Grady.