TUPE and Duty to Consult

As you are no doubt aware, when a business or part of a business is going to be transferred elsewhere the obligations posed by the TUPE Regulations are that employers must consult with their employees pre transfer and tell them about the legal, social and economic implications.

But what about if the employer gets it wrong? What if the employer (wrongly) believes that the TUPE regulations do not apply? It could of course be argued that by getting it wrong the employer has failed to tell their employees about the legal implications of the business transfer.

This matter has been considered in Royal Mail Group Ltd v Communication Workers Union in the Court of Appeal.

The Court of Appeal held that a transferor employer is only duty bound to communicate the legal, social and economic implications of the transfer as they believe them to be. There is no duty to get it right as such providing of course they have made reasonable effort.

This will be great news to employers but, saying this there are implications over what reasonable efforts employers will have needed to go to. Normally the Employer would get legal advice on this issue which might be legally privileged. An employer might need to consider waiving his right to legal privilege and disclosing what advice he was provided with.

For advice on business transfers please contact me on gda@hrlegalonline.com