Outsourcing Dilemma: The Search for Competitiveness, The

TUPE requirements

One effect of the legislation, however, is that set ’rules’ have to be taken into consideration. As far as outsourcing is concerned the following TUPE requirements should be noted.

The transferor or the transferee, for that matter, can make employees redundant before or after the business is transferred, but only on the grounds of economic, technical or organization reasons entailing changes in the workforce. These grounds are normally interpreted in such a way that the transfer itself should not be the principal reason for the redundancies. It follows, then, that to comply strictly with the regulations, the transferor cannot make staff redundant before the transfer simply because the transferee does not want them. However, ...