By Nick Mann | 16 December 2011
Regulations guaranteeing public sector workers’ rights when services are outsourced could be scrapped, according to an employment law expert.
A review of the Transfer of Undertakings (Protection of Employment) rules was announced by Chancellor George Osborne in the Autumn Statement. This formed part of a package of potential employment reforms Osborne said would ‘make it easier to hire people’.
The terms of the Tupe review and a call for evidence were launched in November. In particular, ministers are seeking views on the effectiveness of ‘service provision’ clauses, which were introduced to the Tupe Regulations in 2006. They make clear that any public sector outsourcing is considered a transfer and therefore Tupe applies.
Mark Greenburgh, head of public sector at lawyers Wragge & Co, told Public Finance that the review could lead to these provisions being removed.
‘My bet would be that they would roll that back because they’re looking to get the private sector involved to drive costs down,’ he said.
‘The government could swipe away all the provisions they have asked for evidence on if they had a mind to. Whether they have got the appetite to do so remains to be seen.’
But Nick Chronias, a partner in the employment and pensions group at legal firm DAC Beachcroft, told PF that there was only limited ‘wriggle room’ to change the regulations and remain within the European Union’s Acquired Rights Directive, which the government has said it is committed to. He added that there was a ‘whole slew’ of UK and European case law that supported Tupe being applied to public sector workers who are outsourced.
A Unison spokeswoman said the Tupe review was an attempt ‘to remove regulations and put more pressure on employees’ pay, terms and conditions’.
Regulations guaranteeing public sector workers’ rights when services are outsourced could be scrapped, according to an employment law expert.
A review of the Transfer of Undertakings (Protection of Employment) rules was announced by Chancellor George Osborne in the Autumn Statement. This formed part of a package of potential employment reforms Osborne said would ‘make it easier to hire people’.
The terms of the Tupe review and a call for evidence were launched in November. In particular, ministers are seeking views on the effectiveness of ‘service provision’ clauses, which were introduced to the Tupe Regulations in 2006. They make clear that any public sector outsourcing is considered a transfer and therefore Tupe applies.
Mark Greenburgh, head of public sector at lawyers Wragge & Co, told Public Finance that the review could lead to these provisions being removed.
‘My bet would be that they would roll that back because they’re looking to get the private sector involved to drive costs down,’ he said.
‘The government could swipe away all the provisions they have asked for evidence on if they had a mind to. Whether they have got the appetite to do so remains to be seen.’
But Nick Chronias, a partner in the employment and pensions group at legal firm DAC Beachcroft, told PF that there was only limited ‘wriggle room’ to change the regulations and remain within the European Union’s Acquired Rights Directive, which the government has said it is committed to. He added that there was a ‘whole slew’ of UK and European case law that supported Tupe being applied to public sector workers who are outsourced.
A Unison spokeswoman said the Tupe review was an attempt ‘to remove regulations and put more pressure on employees’ pay, terms and conditions’.
