Hannah Swindle

This Practice Note examines the employment law and practical issues that may arise when an employer reorganises the structure of its business and how to manage the interaction between those issues. It explains the initial considerations, how to approach redundancy dismissals, dismissals for some other substantial reason (SOSR). It also considers how to defend the claims and the impact of collective redundancy consultation, as well as the impact of TUPE 2006 where a relevant transfer takes place as part of the reorganisation. It also explains how to deal with the overlap between redundancy and TUPE consultation obligations

This Practice Note considers how the application of the Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 (TUPE 2006) is relaxed in insolvency situations. It examines relevant insolvency situations, how insolvency proceedings are categorised for TUPE 2006 purposes, Government guidance on the application of TUPE 2006, UK proceedings which are not treated as insolvency proceedings, insolvency instituted with a view to liquidation of the transferor’s assets and not with a view to liquidation of the transferor’s assets, when certain debts do not transfer and when, and how, payments will be made from the National Insurance Fund. It also considers the flexibility to vary terms and conditions when there are relevant insolvency proceedings. It considers the different types of insolvency including bankruptcy, administration, receivership, administrative receivership, company voluntary arrangement (CVA), compulsory liquidation (winding up), members’ voluntary liquidation, creditors' voluntary liquidation, pre-packs.

This Practice Note details the effect of the Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 (TUPE 2006) on the ability to vary or change terms and conditions of employment, including whether the change amounts to a change in terms and conditions, where changes will be void, even with employee consent, where they may be valid, with employee consent, whether the sole or principal reason for the variation is the transfer and what is meant by an economic, technical or organisational reason entailing changes in the workforce (ETO reason). It also covers collective agreements, harmonisation of terms and conditions, the timing of changes, whether there is a time limit after which a variation can be made, changes which are beneficial to the employee and possible solutions when seeking to implement consensual variations.

This Precedent is co-operation agreement between a transferor and transferee providing for pre-transfer collective redundancy consultation to be carried out in relation to proposed redundancies of certain transferring employees, where those redundancies are to be effected post-transfer by the transferee. The agreement reflects the provisions of the Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 (TUPE 2006) and the Trade Union and Labour Relations (Consolidation) Act 1992 (TULR(C)A 1992 as amended in January 2014

This Checklist examines the employment law issues that arise when implementing a business reorganisation. Covers: initial considerations, redundancy situation, ‘some other substantial reason (SOSR), how the employer will defend claims relating to the dismissals, whether collective consultation obligations are triggered, changes to terms and conditions of employment and whether there is a TUPE transfer. This checklist assumes that the business continues to exist at the same location and that, accordingly, no ‘place of work’ redundancy situation exists.