This Practice Note considers the key employment law issues which may arise when drafting and negotiating outsourcing arrangements, focusing in particular on the application of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), SI 2006/246. Issues considered include: different types of outsourcing situation, core planning considerations, the application of TUPE and the possible implications, who and what transfers under TUPE, dismissals, changing employment terms, provision of employee information, due diligence, data protection, obligations to inform and consult, and the commercial dynamic. Different approaches to outsourcing arrangements, such as the standard model and the blanket indemnity approach, are outlined. Managing TUPE risk and conduct of claims are also considered.
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