TUPE
Legal Employment Rights relate to all staff who currently work in your organisation. TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations 1981 (as amended) ("TUPE"). TUPE applies in any situation where a business or a part of a business is transferred from one party to another. It is well established in law that the transfer of a call centre operation to an outsourcer can be subject to TUPE.
The purpose of TUPE is to protect the terms and conditions of employees who are employed in a business (or part) which is to be transferred. This is achieved in two main ways.
- TUPE states that contracts of employment of the employees who are employed in the business (or part) immediately before the transfer will be transferred to the transferee. Effectively, the transferee steps into the shoes of the transferor and takes over all contracts of employment. The protection for the employees is that their terms and conditions of employment (save for terms which provide for pension rights relating to old age, invalidity or survivor's benefits) stay the same, they simply have a new employer.
- The second main way that employees are protected under TUPE is that if an employee who is employed in the undertaking immediately before the transfer is dismissed either before or after the transfer, for a reason connected with the transfer, then that dismissal will be automatically deemed unfair.
RXP work with a leading law firm specialising in employee relations in order to minimise the risk to clients who are outsourcing an existing business. Our associates have experience of working with contact centres going through this situation. Their expert guidance will provide the management team with advice and support throughout the process. Getting the correct advice early on is critical to protecting both the business and employees.
If you would like to know more about this critical outsourcing issue, then please Contact Us.
