30 Nov 2017
The implications of handling a TUPE process incorrectly can be extremely harmful to business, which is why putting proactive measures in place will safeguard your business and offer protection to save cost, time, and ultimately your reputation.Transferring employees can be complex and risky for business if not handled correctly. But don't worry you're in safe hands with our top 10 tips for managing Tupe Transfers.
TUPE Transfers Infographic
Top 10 TUPE Transfers Tips
1. Look out for problems as early as possibleThink about the practical steps you need to take as early as possible. You must conduct effective due diligence, which is ‘the care a reasonable person should take before entering into a legal agreement’, as early as possible.
2. Information on Employee liabilityThe employee being transferred is entitled to receive employee liability information from the outgoing employer. If the information isn’t collated and updated properly, you could be liable to pay a hefty penalty, set as a minimum of £500 per transferee.
3. Check who transfersYou must look at the circumstances and only transfer employees who are assigned to the work activities, or employee group, in question.
4. Get relevant employment informationYou must get full disclosure of pre-transfer promises for all transferring employees. You should also back this up with warranties and indemnities, which are used in law to reallocate risk between buyers and vendors.
5. Your staff may leaveIf an employee chooses not to transfer, their employment terminates immediately, and they don’t need to serve a notice period. This could affect the new employer’s ability to enforce restrictive covenants, as key staff may leave.
6. Bonuses and other benefitsQuite often it’s impossible to replicate the benefits offered by the previous employer. You should look to offer a substantially equivalent arrangement.
7. Find out about agency workersDetails must be provided of the transferor’s agency workers to their new employers. If this information is not provided, employers will breach the rules, which could lead to an award of up to 90 days’ pay per employee.
8. Hidden TUPE transfersBeware of hidden TUPE transfers. Failing to spot a TUPE transfer, could lead to an employer paying a financial penalty of up to 13 weeks’ pay per employee for failing to inform & consult representatives prior to the transfer.
9. Expect disputesThe activities in question must remain the same for TUPE to apply. For example contractors may argue there is service provision change because certain work activities have ceased during the changeover in contractors.
10. Other potential problemsHarmonising the terms and conditions of transferring employees with your existing workforce is important. Ensure collective information and consultation duties are conducted with employee representatives. For expert support with sourcing and building your business’ HR policies and procedures contact Croner on 0808 145 3490.
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