The DTI has launched a consultation on draft regulations to update the Transfer of Undertakings (Protection of Employment) Regulations 1981 (TUPE), to improve protection for employees and helping business by reducing transactions costs when companies change ownership.
The TUPE Draft Revised Regulations, includes proposals to increase the transparency of the transf process by introducing a requirement on the old employer to notify the new employer of any employment liabilities. They will also be required to clarify the circumstances in which employers can lawfully make transfer-related dismissals and negotiate transfer-related changes to terms and conditions of employment for economic, technical or organisational reasons. It also proposes to introduce new flexibility into the Regulations application in relation to the transfer of insolvent businesses.

The consultation seeks views on the draft Regulations and is open to anyone who wishes to respond. Following this consultation exercise, the revised Regulations will be laid before Parliament around the beginning of July, to come into effect on 1 October 2005. The consultation document can be found at ww w.dti.gov.uk/er/tupeconsultation.pdf