Green light for TUPE extension

The Government has announced plans to take forward reform of TUPE, the
legislation that protects employee rights when the business they work for is
transferred to a new owner.

The DTI has indicated that the reforms will apply the TUPE (Transfer of
Undertakings and Protection of Employment) regulation more comprehensively to
contracts involving labour-intensive services such as refuse collection,
catering and cleaning.

It will also ensure that the new employer is better informed of the ongoing
employment rights of the employees it takes on. In addition, the DTI claims the
reforms will improve the way TUPE operates when insolvent businesses are sold.

Trade and Industry Secretary Patricia Hewitt, said: "I will be carrying
out public consultation on draft revised regulations with a view to placing
them before Parliament in the autumn, to come into effect in spring 2004."

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The issue of occupational pension rights under TUPE is to be considered
separately as part of the pensions review being taken forward in the
Government’s Green Paper.

www.dti.gov.uk