The Advocate General has given his opinion in the case of Alemo-Herron & Ors v Parkwood Leisure Ltd supporting the proposition that employees transferred under TUPE can continue to benefit from “dynamic” collectively agreed terms and conditions post transfer.
Next, the DWP has launched a consultation on the amendment of the Transfer of Employment (Pension Protection) Regulations 2005 on the pension contributions a transferee must make following a business transfer. The current regulations say that ‘relevant contributions’ must be made and that the amount contributed must equal the employee’s contributions subject to a maximum of 6% of basic pay. The reason for the change is that the regulations do not make it clear that the pension scheme member is entitled to choose their own rate of contribution. The proposal is that members will be able to choose their own contribution, which the employer must match, up to the 6% cap. Transferees will also be able to satisfy their obligation to protect pension contributions by keeping up contributions equivalent to those made before the transfer.
I also reported, in brief, last month, the consultation on changes to TUPE 2006 to removed so-called “gold plating”. In a bit more detail, the proposals are:
- – to repeal most service provision changes provisions;
- – to repeal the specific requirements regarding the notification of Employee Liability Information;
- – to change the wording of the provisions restricting changes to contracts, the provisions giving protection against dismissal and the provisions concerning a substantial change in working conditions to the material detriment of the employee to reflect the wording of the Acquired Rights Directive and European Court of Justice case law;
- – to amend the meaning of ‘entailing changes in the workforce’ so that it can cover changes in the location of the workforce;
- – to ensure consultations by the transferee on collective redundancies with staff who are due to transfer count for the purpose of the obligation to consult on collective redundancies; and
- – to allow micro businesses to inform and consult employees directly regarding transfers, rather than through representatives, in cases where there is neither a recognised union nor existing representatives.