When it comes to employment law, the Transfer of Undertakings (Protection of Employment) regulations, commonly known as TUPE, are a crucial piece of legislation. They are designed to protect employees when the business they work for changes hands. However, the application of TUPE can often lead to confusion and uncertainty, particularly when it comes to changes in employment contracts post-transfer. This article aims to shed light on this complex area, focusing on the rights of employees and the obligations of employers under TUPE. We will also address the question, “can my hours be reduced under TUPE?” and explore the concept of a ‘toupee contract’.
Understanding TUPE
The TUPE regulations were introduced to protect employees when a business is transferred to a new owner. They ensure that employees’ terms and conditions of employment are preserved when a business is sold or when there is a ‘service provision change’, such as outsourcing, insourcing, or re-tendering.
Under TUPE, employees are automatically transferred to the new employer, who steps into the shoes of the old employer. This means that the new employer takes on all the rights, duties, and liabilities associated with the employees. The employees’ terms and conditions of employment are protected, and continuity of employment is maintained.
Changes to Employment Contracts Post-TUPE
One of the key protections offered by TUPE is that it restricts the new employer’s ability to make changes to the employees’ terms and conditions of employment. This includes changes to pay, hours, location, and job duties. However, there are some circumstances in which changes can be made.
- Economic, technical, or organisational reasons: Changes can be made if the employer can demonstrate that there are ‘economic, technical, or organisational reasons’ (ETO reasons) requiring changes in the workforce. This could include, for example, a need to cut costs, introduce new technology, or restructure the business.
- Agreement: Changes can also be made if the employee agrees to them. However, the employer cannot force the employee to agree to changes, and any pressure to do so could amount to a breach of contract.
Can My Hours Be Reduced Under TUPE?
Given the protections offered by TUPE, many employees wonder, “can my hours be reduced under TUPE?” The answer is that, in general, your employer cannot unilaterally reduce your hours following a TUPE transfer. Any such change would be a breach of your employment contract and could potentially be challenged as a breach of the TUPE regulations.
However, as mentioned above, there are some circumstances in which changes can be made. If your employer can demonstrate that there are ETO reasons requiring a change in the workforce, they may be able to reduce your hours. Similarly, if you agree to a reduction in hours, this would be permissible. But in both cases, the employer would need to follow a fair process, which would typically involve consultation and potentially redundancy procedures.
What is a ‘Toupee Contract’?
The term ‘toupee contract’ appears to be a misinterpretation or typo of ‘TUPE contract’. There is no such thing as a ‘toupee contract’ in employment law. If you come across this term, it is likely that the person is referring to a TUPE contract, i.e., an employment contract that has been transferred under the TUPE regulations.
Challenging Unlawful Changes
If you believe that your employer has made unlawful changes to your contract following a TUPE transfer, there are several steps you can take:
- Raise a grievance: The first step is usually to raise a formal grievance with your employer. This involves setting out your concerns in writing and asking your employer to investigate and address them.
- Seek legal advice: If your employer does not resolve your grievance to your satisfaction, you may wish to seek legal advice. An employment lawyer can help you understand your rights and options, and can assist you in taking further action if necessary.
- Tribunal claim: If all else fails, you may be able to bring a claim in an employment tribunal. This could be a claim for unfair dismissal if you have been dismissed, or a claim for unlawful deduction from wages if your pay has been reduced.
In conclusion, while TUPE provides important protections for employees, it can also lead to uncertainty and confusion. If you are an employee who has been ‘tuped’ and you are concerned about changes to your contract, it is important to understand your rights and to seek advice if necessary. Similarly, if you are an employer considering a business transfer, it is crucial to understand your obligations under TUPE and to plan and manage the process carefully to avoid potential legal pitfalls.
