Following TUPE procedure

A simple error of judgement resulted in a large award against companies that omitted to fully meet the requirements of  TUPE regulations.

Since the change of ownership was purely administrative and would not result in any significant changes for the staff, the seller argued that there was no requirement to inform elected employee representatives, and simply told its employees directly about the changes. 

The EAT found that under the TUPE (Transfer of Undertakings Regulations) employee representatives should have been elected and informed, but that the maximum award made by the Tribunal – 13 weeks’ pay – was too harsh.  As a result the award was reduced to seven weeks’ pay, and the EAT ruled that both the buyer and seller were liable for a share of the awards.

Not following the letter of the law can prove costly, under TUPE Regulations and other Employment law.  It is always best to make sure you are fully aware of any legislation before you take action, and the pragmatic common sense approach may not always be the best.  If you need any guidance about employment law and its impact on your organisation, contact Hardwick HR today!