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Effective from 1 July 2024 key changes to the Transfer of Undertakings (Protection of Employment) (TUPE) regulations came into force. The TUPE regulations govern how employee rights are handled during business transfers. Under previous rules, microbusinesses with fewer than 10 employees could inform and consult directly with employees, where no existing trade union or employee representation was in place. Now, more employers fall under this exemption. In England, Scotland, and Wales, if no existing representation is in place, employers may consult directly with employees if:
- There are fewer than 50 employees in the organisation, or
- Fewer than 10 employees are affected by the transfer, regardless of the size of the organisation.
In both scenarios, direct consultation applies where there is no trade union recognition in place. In all other cases, the duty to elect employee representatives will continue to apply.