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TUPE rules relaxed for microbusinesses

The smallest enterprises are set to benefit from a change to rules around business transfers.

The Transfer of Undertakings (Protection of Employment) Regulations, or TUPE, apply to organisations of all sizes and protect employees’ rights when the business they work for transfers to a new employer.

From 31 July 2014, TUPE rules have been updated so that micro businesses employing fewer than ten people will be able to inform and consult directly with each employee – rather than electing and consulting with representatives, if there is no recognised trade union or existing appropriate representatives – affected by a business transfer.

The move is designed to make the process less formal and save time for both employers and employees.

Research has shown that one in eight workplaces in Britain has gone through some kind of business transfer, with such transfers affecting up to two million employees each year.