Will the Government's recently announced
consultation mean the end of the TUPE Regulations? Well, not quite,
but the proposed reforms certainly go much further than many were
expecting.
Probably the most high profile of the Government's recent
proposals is the removal of the specific 'service provision
change' (SPC) clauses, under which contracting out, contracting
in and retendering exercises were expressly brought within the
scope of TUPE following the reform of the Regulations in
2006. This will have particular significance for professional
services firms who often tender for contracts on a regular
basis.
The proposed repeal of the SPC provisions comes in response to
business concerns that the provisions have anti-competitive effects
as clients often change contractors because they are unhappy with
the employees providing the services only to find that the same
employees have transferred to the new contractor. There is
also the risk that a transferor may use
