TUPE considerations and bidding
Contents |
[edit] Introduction
The Transfer of Undertakings (Protection of Employment) Regulations 2006 as amended by the Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2014 is frequently referred to as TUPE.
These regulations protect employees’ terms and conditions when a business is transferred from one owner to another. They apply to business transfers and service provision transfers of all sizes and to both the outgoing employer and the incoming employer.
[edit] When TUPE can be a concern
When TUPE applies, it means employees that have been assigned to a project will be transferred under the same terms and conditions - which may be more generous than the new employer would offer. This may influence a potential bidder's decision whether or not to pursue the contract.
It is not uncommon for the existence of TUPE to be phrased in vague language, such as “TUPE transfers may apply” or “the contracting authority does not expect that TUPE will apply”. Even if conditions are not clear (or details are not available), the potential contractor is likely have to comply with TUPE requirements once the terms and conditions of the contract have been accepted.
[edit] Preparing for TUPE
It is possible to request basic information (and subsequent clarification, if necessary) regarding the number of people who will be transferred. If information is inconclusive, bidders should attempt to make an estimate of that number. This can be used as part of the negotiation process.
Bidders should also be well aware of the consequences of TUPE and should carry out due diligence when bidding on projects. The new employer may be able to suggest revisions for employees that have been inherited through TUPE, but severe changes could result in claims of constructive unfair dismissal.
[edit] Related articles on Designing Buildings
Featured articles and news
About the 5 Percent Club and its members
The 5% Club; a dynamic movement of employers committed to building and developing the workforce.
New Homes in New Ways at the Building Centre
Accelerating the supply of new homes with MMC.
Quality Planning for Micro and Small to Medium Sized Enterprises
A CIOB Academy Technical Information sheet.
A briefing on fall protection systems for designers
A legal requirement and an ethical must.
CIOB Ireland launches manifesto for 2024 General Election
A vision for a sustainable, high-quality built environment that benefits all members of society.
Local leaders gain new powers to support local high streets
High Street Rental Auctions to be introduced from December.
Infrastructure sector posts second gain for October
With a boost for housebuilder and commercial developer contract awards.
Sustainable construction design teams survey
Shaping the Future of Sustainable Design: Your Voice Matters.
COP29; impacts of construction and updates
Amid criticism, open letters and calls for reform.
The properties of conservation rooflights
Things to consider when choosing the right product.
Adapting to meet changing needs.
London Build: A festival of construction
Co-located with the London Build Fire & Security Expo.
Tasked with locating groups of 10,000 homes with opportunity.
Delivering radical reform in the UK energy market
What are the benefits, barriers and underlying principles.
Information Management Initiative IMI
Building sector-transforming capabilities in emerging technologies.
Recent study of UK households reveals chilling home truths
Poor insulation, EPC knowledge and lack of understanding as to what retrofit might offer.