Amendments made to the TUPE regulations (the Transfer of Undertakings (Protection of Employment) Regulations 2006) on 1 January 2024 are due to come into effect for TUPE transfers that take place on or after 1 July 2024.
These changes widen the micro-business exception which currently allows employers with fewer than 10 employees to inform and consult directly with the affected employees rather than with elected representatives. Post 1 July, employers will be able to dispense with the often fraught obligation to elect representatives in the following circumstances:
- The employer employs fewer than 50 employees, or
- There are fewer than 10 transferring employees
In order for this micro-business exception to apply, there must be no appropriate representatives already present (a recognised trade union or employee representatives appointed by the affected employees who have the authority to be consulted about the transfer).
This extension to the micro-business exception is likely to be welcomed by employers, as it will make the information and consultation requirements less complex and more streamlined for transfers involving a small number of employees. For transfers involving a larger number of transferring employees (for example where the employer employs 49 employees who are all transferring), it seems likely that it will be easier to continue with the usual procedure of consulting employee representatives, rather than consulting all 49 employees individually.
Frances Rollin