Government puts off new Tupe rules to April 2006

The government has delayed the implementation of new Tupe regulations until 6 April 2006.

Originally the Department of Trade and Industry had planned to lay the new regulations before parliament by 1 July 2005, bringing them into force on 1 October.

However, as a result of the large volume of responses to the consultation exercise, which closed earlier this month, and the many issues raised by respondents, ministers have decided to set a new timetable for finalising the regulations.

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The main changes that the new regulations will make include:

• Widening the scope of Tupe in “contracting-out” situations
  
• Clarifying the law on transfer-related dismissals
  
• Imposing an obligation on the transferor to notify all rights and liabilities that will pass on the transfer
  
• Giving greater flexibility where the transferor is insolvent.

Businesses groups are likely to be disappointed at the delay of these regulations, designed to end uncertainty during outsourcing or the selling of assets.