(Solution) CIPD 5OS01 3.2: Legal requirements relating to transfers of undertakings


As evidenced in Acas.org.UK (2023), the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) offer the rights of employees in an event their employment changes when a business is transferred to a new owner. According to the regulations, business transfer include when a business moves from one employer to the other. An example is merging of 2 businesses for forming a new one. An employer must however change for TUPE to apply and an employee automatically transfers to the new employer.

Further, for service contract changes, this occurs in outsourcing- service offered in-house taken over by a contractor, insourcing- contract ending and work transferred in-house and retendering- contract ending and taken over by a new contractor. In line with 2014 changes of TUPE regulations, the information on transfer must be provided within a period of 28 days prior the transfer of business. In line with the TUPE regulations, employer ought to consult in the process of making the TUPE transfer. The process followed include being advance informed on the TUPE transfer with no specified timeline for notification. The scope of consultation can include engagement of recognised trade union and employee representatives. Failure to pursue the detailed consultation would lead to union making a claim. This is with the outcome being offered with 13 weeks pay. Nevertheless, under the TUPE regulations, the employers have the right of dismissing an employee in transfer under the reasons of economic, technical and organisational (ETO) reasons. Nevertheless, there is a need for strictly following all the dismissal and redundancy procedures with acting reasonably of decisions for dismissal or selection for redundancy…..

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