Employment Law Essay Example | Topics and Well Written Essays - 3000 words - 11

Employment Law - Essay Example erms and conditions.2 It is important that businesses in the process of reorganization work within the permitted parameters of TUPE otherwise, there are significant opportunities for litigation arising out of employee complaints.3 While the managers are purporting to simply reorganize the business, this organization involves changes that are consistent with the definition of transfer of undertaking within the meaning of TUPE. Regulation 3(b) provides that TUPE applies to situations in which service provisions are changed.4 Therefore subcontracting and outsourcing will apply as they are situations in which service provisions are changed. In fact it was held in Fairhurst Ward Abbotts Limited v Botes Building Limited and others that where a contract for maintenance was split between two entities, it amounted to a transfer within the meaning of TUPE.5 Therefore even if the subcontracting only transfers out a part of the service, it would be considered a transfer of undertakings under TUPE. There are legal consequences for the business since the subcontracting and outsourcing is covered by TUPE. Regulation 7 of TUPE provides that where a transfer within the meaning of TUPE has the effect of terminating the services of an employee, that termination will be treated as unfair dismissal, unless the transfer is for an â€Å"economic, technical or organizational reason entailing changes in the workforce.†6 The effect of Regulation 7 of TUPE is to ensure that the rights of employees are protected in cases where undertakings effecting their employment are transferred.7 It therefore follows that if an employee’s job is lost to outsourcing or subcontracting, that loss is automatically unfair dismissal. Subcontractors and others to whom services from the business are outsourced may be reluctant to take on these contracts and jobs since there is a risk of litigation for unfair dismissal. In fact, the business will also be liable for unfair dismissal. Managers will also