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Revamped TUPE regs could cost you dear
Page 8
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HAULIERS TENDERING tor new contracts are expected to face a rash of compensation claims when the regulations that protect the terms and conditions of affected employees change next month.
The current Transfer of Undertakings (Protection of Employment) (TUPE) regs apply when a business is transferred to a new owner or when a contract changes hands and there is some sort of business transaction between the old and new contractors. Transport lawyer Simon Edwards says that the new version of TUPE means employees will be covered even if there are no dealings between the old and new contractor.
-I think it's going to affect quite a lot of businesses in the haulage industry." he says. "In most cases where one contractor loses a contract to someone else it's very unusual for them to have anything to do with each other."
Edwards, senior partner at Chester-based Aaron & Partners, explains that if the old and new contractors fail to consult affected employees about the change, a line of up to 13 weeks' wages could be imposed for each employee.
He adds: -I think there will be a lot of people learning some very expensive lessons after thinking they were just taking on a contract and ending up with a whole shedload of responsibilities."
Edwards advises new contractors to make sure their pricing reflects the potential costs of TUPE and to try to get indemnity against any liabilities arising from the new regs.
Despite the extension of TUPE, the T&G union argues that employees may lose out as well.
A spokesman points out that traditionally,employers have been prevented from changing employees' terms and conditions before a contract changes hands:-That has been relaxed. We believe employees, especially in non-union workplaces, will be put under pressure to agree to reduced terms and conditions of employment."