Pension protection under transfers

first_img Comments are closed. The Government has given its strongest indication that staff pensions are tobe protected by law for the first time when employees transfer from onebusiness to another. The proposals are part of the Government’s push to convince public sectorstaff that it is safe to move to private sector employers, and are outlined ina long-awaited consultation document on changes to Transfer of UndertakingsProtection of Employment regulations. Currently pensions are not covered under Tupe, but in practice public-sectoremployers have had to ensure private contractors provide staff with similarpensions. John McMullen, national head of employment law at Pinsent Curtis Biddle,said the proposals mean private-sector employees’ pensions will for the firsttime be protected when staff transfer. McMullen, who advises the CBI on Tupe, added, “As a contractor, youwill write the cost of providing a pension scheme into the overall cost. “What it may mean is that the cost imperative of contracting out maynot be as high as before. You cannot do it much more cheaply because the laboursaving is not there.” The consultation document also includes proposals to make it easier foremployers to change terms and conditions, provided there is an economic,technical or organisational reason to do so. But McMullen thinks this proposal is contrary to European case law. Other plans include consideration of whether Tupe should apply when servicecontracts change hands from company to company and greater flexibility overwhen the regulations apply to transfers of insolvent businesses. By Ben Willmott Previous Article Next Article Related posts:No related photos. Pension protection under transfersOn 18 Sep 2001 in Personnel Todaylast_img read more