Draft regulations have been published (the Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023) that amend the Transfer of Undertakings (Protection of Employment) Regulations 2006, commonly known as TUPE.
These draft regulations widen the micro-business exception which currently allows employers with fewer than 10 employees to inform and consult directly with the affected employees rather than with elected representatives. For TUPE transfers that take place on or after 1 July 2024, employers will be able to dispense with the often fraud obligation to elect representatives in the following circumstances:
- The employer employs fewer than 50 employees, or
- There are fewer than 10 transferring employees
In order for this micro-business exception to apply, there must be no appropriate representatives already present (a recognised trade union or employee representatives appointed by the affected employees who have the authority to be consulted about the transfer).
This extension to the micro-business exception is likely to be welcomed by employers, as it will make the information and consultation requirements less complex and more streamlined for small employers or small transfers.