21 May 2024

Consultation on clarifications to the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) and abolishing the legal framework for European Works Councils

The Government is consulting on the proposal to clarify that the TUPE Regulations 2006 do not apply to ‘limb (b) workers’.  The definition of ‘employee’ in the TUPE Regulations is wider than in the Employment Rights Act 1996 and in other legislation, which led to an employment tribunal in Dewhurst v Revisecatch Ltd,  holding that TUPE applies to all workers, and not just employees.  

The consultation also addresses the ECJ’s controversial decision in ISS Facility Services NV v Govaerts.  In that case, the ECJ held that where a business transfers to multiple buyers/service providers, the assigned employees could have their employment split between the different buyers/service providers. The Government’s proposal is that  individual assigned employees must transfer to only one employer and that transferee employers would be required to agree who should take on each employee.

Finally, the consultation proposes to abolish the legal framework of European Works Councils in the UK and will mean that any already in existence may also be disbanded.

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