A raft of changes to TUPE is expected to be made in October 2013. Perhaps the most significant proposal subject to Government consultation, which closes on 11 April 2013, is to remove outsourcing and insourcing from the scope of TUPE. As this would have a considerable impact on existing outsourcing arrangements, views are sought on the extent of the proposed changes as well as what a suitable transition period would be in order to minimise the effects for businesses who have existing outsourcing arrangements in place.
Two changes that should significantly smooth the way for business sales are also proposed. First, transferring companies are to be allowed to rely on the reasons of the purchasing company to justify making redundancies prior to a transfer. Conversely, purchasers would be allowed to start consulting prior to the transfer on any redundancies they propose. These changes will be welcomed by businesses hampered by the current law when seeking to streamline their workforces on sale.