TUPE changes could increase employment costs, says B&ES

The Building & Engineering Services Association (B&ES) has stated that it is concerned that proposals outlined in a Government consultation on changes to the Transfer of Undertakings (Protection of Employment) (TUPE) Regulations could increase employment costs for service and facilities companies in the specialist engineering sector.

Peter Rimmer, Head of the Association’s Employment Affairs Department, said:

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“The Government is putting forward proposals for changes, to take effect from the autumn of this year, which we believe are unnecessary.”

Mr Rimmer went onto say that in his opinion both employers and trade unions were satisfied with the effect of the revised TUPE Regulations which were introduced in 2006, saying that they “introduced a degree of clarity and thereby reduced uncertainty”.

Commenting on the Government’s proposals, Peter Rimmer said:

“We feel that what the Government is now proposing will signal a return to the malpractice and abuse which – without the benefit of the 2006 Regulations – bedevilled the application of TUPE in outsourcing situations.”

According to the Government, the proposed changes will produce a net benefit to business of up to £30m a year; however B&ES disagrees, stating that it believes that the cost to business of a more uncertain legal and commercial environment has been overlooked.

The Government’s consultation closed on 11 April and responses are currently being analysed with the outcomes of the consultation expected to be announced in the near future.