Post on 13-Apr-2017
Transferring People Into the Organisation
Matt Keeffe Group HR Manager
Transfer of Undertakings -Definition
“When the whole or part of an employer's business or undertaking is sold or transferred as a going concern to another employer, a TUPE transfer is said to occur.
A TUPE transfer may also consist of a "service provision change" whereby activities are outsourced to an external contractor, brought back in-house, or
where there is a change in the contractor carrying out such activities. The term "TUPE" is an acronym for the Transfer of Undertakings (Protection of Employment)
Regulations 2006 (SI 2006/246) (the TUPE Regulations 2006).”
Transfer of Undertakings –Transferor’s and Transferee’s
During this presentation we will be referring to the
‘Transferor’, this is the organisation the employees are
coming from; and the ‘Transferee’ this is the organisation the employees are transferring to.
Both these terms are relevant when referring to TUPE Regulations 2006 as amended.
Transfer of Undertakings –Initial Actions
Seek HR Involvement at an early stage. Ensure the transfer is agreed including date. Check that TUPE applies, points to look for change
in service requirement post transfer. Request Due Diligence called ‘Employer Liability
Information’. Transferor to advise Unions of transfer. Consider Pension Implications.
Transfer of Undertakings - Process Staff Transferring
Consultation Meetings
Requesting Due
Diligence Information
1:1 Meetings
Contracts Issued and Induction
Transfer of Undertakings – Consultation Meetings - Transferor
On notification of a transfer of undertakings, the incumbent employer, has a legal obligation to consult with employee’s as follows:
• In good time before the relevant date of transfer.• Ensure election of Employee Representatives for the
transfer (if they are not supported by a Trade Union).• Meet with the Employees or confirm in writing the
terms and conditions of employment. • Discuss any ‘Measures’ or changes as they are more
commonly known that the Transferee intends to make.
Transfer of Undertakings – Consultation Meetings - Transferee
The incoming employer on notification of a transfer of undertakings has a legal obligation to consult with employee’s as follows:
• In good time before the relevant date of transfer.• Ensure consultation with Employee
Representatives for the transfer (if they are not supported by a Trade Union).
• Meet with the Employees and discuss the transfer called a ‘Group Consultation’.
• Discuss any ‘Measures’ or changes that they intend to make. (Including any ETO reasons for change).
Transfer of Undertakings – Consultation Periods
Consultation periods depends on the number of employees transferring as follows:
• Less than 20 employees 14 days.
• More than 20 employees but less than 100 30 days.
• More than 100 employees 90 days.
Transfer of Undertakings – Group Consultations
Group consultations are the transferee’s opportunity to discuss the following with the employee’s:
• Introduction to the company background and history.
• The affect of TUPE Regulations and what that means.
• Measures as described earlier. (Including pensions).
• Answer any questions the employee’s have about the transfer.
Transfer of Undertakings – Employee Liability Information
No later than 28 days before the transfer, the Transferor must:
• Supply the transferee with the ‘Employee Liability Information’, commonly known as Due Diligence.
• The disclosure should include all terms and conditions of employment, policies and procedures that are contractual.
Transfer of Undertakings – One to One Meetings
The following is relevant to the One to one meetings:
• Check the ‘Employee Liability Information’, commonly known as Due Diligence, with the employee’s.
• Discuss training opportunities.
• Complete all transfer paper work with the employee.
• Answer any queries from the employees.
Transfer of Undertakings – ‘Getting it Wrong’
• Both the Transferor and Transferee are jointly liable
for any failings in the consultation process.
• Failure to inform and consult may result in ‘Protective Award’ of up to 13 weeks pay at Employment Tribunal, per employee.
• If new employees are not issued with Contracts and or Job Descriptions and they are subject to dismissal. This may result in an award at Employment Tribunal of up to 8 weeks pay, per employee.
Transfer of Undertakings – One to One Meetings – After Action
Do’s:
• Check all terms and conditions including overtime, retainer payments and any other contractual benefits.
• Compare bid document TUPE information with actuals.
• Query any inconsistencies via HR to incumbent employer.
• Update labour figures as appropriate, via BDM’s.
Transfer of Undertakings – One to One Meetings – After Action
Don’ts:
• Assume all information is correct.• Make any changes to contracted hours without checking
with the transferor and HR first. • Forget to include any pension liabilities. • Guess the term time calculation. • Forget to include any other payments like Laundry, retainer
pay and fringe payments. • Wait a protracted period before raising issues if information
does not match.
Transfer of Undertakings – Induction
Operations Managers are to ensure induction is arranged, to cover the following:
• Policies and Procedures.
• Health and Safety.
• Food Hygiene.
• Uniform Issue.
Transfer of Undertakings – Contracts Issued
Within 56 days of the transfer the HR department will issue:
• Contract of employment with transferred terms.
• Job Description.
Transfer of Undertakings – Summary
Ensure the consultation process is followed.
Document all meetings.
Check and re check employee liability information.
Ensure all employees receive a contract and job description.
Any Questions ?