As a small businesses you may be concerned about how to handle TUPE (Transfer of undertakings), especially if you’re based around Bristol and have seen the news about Lloyds Banking Group. The company has offices in Bristol and has caused concern amongst staff after recently deciding to outsource 1,000 jobs.
The story hit the headlines because those employees will now be outsourced to Diligenta and the move will affect their pension entitlement and they will lose all their non-contractual benefits. Find out more about this story.
So how could Lloyds Banking Group have handled the situation better or how could you approach this if you’re thinking of selling your business or outsourcing staff?
What is TUPE and how should it be handled?
TUPE refers to 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”.
The regulations apply to businesses of any size. They’re designed to protect employees’ rights when the organisation or service they work for transfers to a new employer.
Considering selling or outsourcing your business?
Outsourcing is a huge part of business life now, and for many organisations it’s a sensible way to cut costs and improve efficiency – two things at the forefront of the minds of pretty much every business out there and one which was hammered home in the Autumn Budget with the emphasis on improving Britain’s productivity.
TUPE is a complex subject, and a complex process – and as the recent Bristol Post story showed it’s important to get it right.
If you’re considering:
- outsourcing staff
- selling all or part of your business
- making other change which could affect staff
contact us at CitrusHR Consulting on 0844 854 670, and we can advise you on whether TUPE or other regulations affect you and how best to approach this.
Make sure you do it right
Whether you’re whether you’re making the transfer or taking on the transfer of employees, you have to think about the impact on people as well as the business, so consider these points:
- Communicate: your staff may feel concerned, anxious, upset and worried about the possible implications. Keep them informed as much as possible, at each step of the process, and ensure they’re aware of the timescales and practicalities.
- Consult: speak with your staff about their concerns and where possible, try to engage and involve them at the early stages of the change process.
- Carry out due diligence: ensure your staff are aware of all necessary information regarding the TUPE process.
- Consider company culture: how this might impact on the challenges that may arise during the TUPE process.
- Put yourself in their shoes: above all – your staff are people. They have families, they have worries, and they are human. If you were them, what information would you like to have?
- Don’t stop on transfer day: this is when the hard work begins to combine or change culture. Make sure you’re ready for it.
TUPE can be complex for employers in terms of legislation as well as the softer issues. CitrusHR Consulting is here to answer your queries and steer you through.
Give our friendly team a call today on 0844 854 6704 or contact us online.