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28 Jan 2012

VODG responds to the Government's latest TUPE consultation

The Government's call for evidence seeks views on the effectiveness of the Transfer of Undertakings (Protection of Employment) Regulations 2006 and how they might be improved.

Whilst the Regulations implement a European Directive and provide important protections for both employers and employees, the Government is concerned that some businesses believe they are 'gold-plated' and overly bureaucratic.

This is a view shared and a major issue for many VODG members. The inherent risks arising from the Regulations have resulted in more legal advice being sought on the complex issues surrounding TUPE transfers and whether the Regulations apply. Some aspects of the Regulations have room for misinterpretation.

Many social care organisations will now take the decision not to proceed with tenders due to the specific requirements of the TUPE transfer involved, or the lack of clarity surrounding it. This ultimately is bad for increasing user-choice and creating market plurality.

The VODG believes it would be helpful to have an obligation on the commissioning transferor to identify whether the work they are tendering out needs to be done so on a TUPE basis prior to that tender being put out, as more and more transferors are leaving that to be decided by the transferee at tender once they commence the process to take on the work. This manifestly places an unfair burden of risk onto potential providers.

Read the full submission (MS Word Doc 123Kb)