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Restructuring to avoid transfer regs

2nd December 1993, Page 7
2nd December 1993
Page 7
Page 7, 2nd December 1993 — Restructuring to avoid transfer regs
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Which of the following most accurately describes the problem?

• Hauliers may be able to escape controversial Transfer of Undertakings regulations (TUPE) by restructuring the businesses they take over, claims a leading legal firm.

Solicitors at Wedlake Saint say restructuring could help hauliers avoid being left with "a loss-making millstone" after winning a contract which could be affected by TUPE.

Solicitor Robert McCreath says there are circumstances when staff covered by a TUPE agreement can be made redundant, for instance if the business is restructured to get rid of a tier of management.

Hauliers can re-negotiate rates with staff, as long as the staff have the chance to talk to an independent adviser and if is agreed in writing, he adds.