The final amendment to Transfer of Undertakings (Protection of Employment) legislation will come into effect at the end of July – but it may have an effect on the way that transfers are handled right now. The Peninsula Advice Service explains how this will impact employers.
The final change affects transfers that are covered by the Transfer of Undertakings (Protection of Employment) Regulations 2006 that will occur on or after 31st July 2014. Where the transfer involves a micro business i.e. a business with 10 or fewer staff, then the consultation requirements involving these staff will apply differently.
Currently, an employer must inform and consult his staff over the transfer. The Regulations state that employee representatives must be informed, rather than the staff themselves. This can be trade union representatives; or employee representatives who are appropriate to be consulted. Where there are none of these present, an election has to be held to elect employee representatives, and then these are the ones who take part in the consultation process.
For transfers taking place on or after 31st July 2014, there will be no need to elect representatives in micro businesses where there are no appropriate representatives already in place. This means that the employer can consult individually with the staff.
This clearly reduces the administrative burden on an employer. It must be noted that the trigger point for this amendment is where there are 10 or fewer staff in the entire organisation. This should not be read as 10 or fewer staff in a larger organisation who are affected by a transfer. The whole organisation must contain 10 or fewer staff and once this threshold is met, then it does not matter how many staff within those 10 are affected by the transfer.
For further clarification then please contact the Peninsula Advice Service on 0844 892 2772.