Obligations to inform and consult employee representatives when buying or selling a business repealed for small businesses

News - 04/08/2014

CODE: GREEN

From Thursday 31 July, micro businesses with fewer than 10 employees are no longer obliged to inform or consult elected employee representatives when they are buying or selling a business or involved in outsourcing part of a business, which amounts to a TUPE transfer.  Instead these employers can now deal with the employees direct.  In reality many small employers already communicate with employees on these issues, although in doing so they have been at risk of costly claims of up to 13 weeks gross pay.  Such claims can be made by disgruntled employees combining a claim of failure to inform and consult with perhaps a claim of unfair dismissal made against both the outgoing and incoming employers.

The new rule applies to employers who have fewer than 10 employees at the time they are required to give TUPE information where there are no appropriate representatives of a recognised trade union or elected employee representatives. It applies to transfers which take place on/after 31 July 2014.

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Although correct at the time of publication, the contents of this newsletter/blog are intended for general information purposes only and shall not be deemed to be, or constitute, legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Please contact us for the latest legal position.

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