Beecroft recommends watering down TUPE regulations

Controversial proposals to remove "red tape" to make it easier to sack workers hit the headlines when the Beecroft report on employment law was published yesterday.

The report makes recommendations on a wide range of issues, including suggestions for reforming the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) which protect workers when, for instance, a social landlord transfers ownership of its homes or outsources services.

Beecroft recommends that the harmonisation of the terms and conditions of transferred and original employees should be allowed after one year, and to allow the transferring employer to make employees redundant if, when transferred, they would immediately be made redundant for valid reasons by the transferee employer.

He argues that the TUPE regulations reduce the likelihood of a transfer that would result in greater efficiency or, if a transfer goes ahead, makes it harder to achieve greater efficiency.

Commenting on the proposals, the law firm Eversheds said:

“Beecroft voices the opinions of many employers in his comments about TUPE. Even if his specific recommendations are not accepted, it is likely that the report will be a catalyst for change in this area. We can expect a response from the Government shortly, most likely the rapid commencement of a formal consultation exercise on TUPE."