TUPE Amendments 2014


The Acquired Rights Directive (ARD) applies across the Member States of the European Union and is implemented in the UK by the Transfer of Undertakings (Protection of Employment) Regulations 2006 (the “TUPE Regulations”). Under the ARD and the TUPE Regulations, employees automatically transfer on the sale or transfer of a business or undertaking and, under the TUPE Regulations only, on a service provision change as well. Last year, the UK Government consulted on the scope of the TUPE Regulations, primarily concerned that they went further than was required by the ARD. The result was the Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2014 (the “TUPE Amendment Regulations”), which take effect on various dates throughout 2014. Although not as far reaching as first envisaged, the new regulations enact a number of important changes of which those involved in the transfer or sale of businesses or in outsourcings of services should be aware. The key amendments are:

1. Changes to terms and conditions now permitted (in limited circumstances): Transferees (generally the buyer or new service provider) can now make changes to terms and conditions of employment of transferring employees if the sole or principal reason for the change is an economic, technical or organizational reason entailing a change in the workforce (an “ETO Reason”) and the employee agrees to the change; or the employee’s employment contract allows the change to be made. Although this amendment is helpful and loosens the existing rules, it is unlikely to go far enough to allow a transferee to change terms for the most common reason, harmonization...

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Written by:


Morrison & Foerster LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.