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The UK government has announced an open invitation for public comments on proposed employment reforms. This initiative is aimed at gathering diverse perspectives to shape policies that will affect the labour market. The proposed reforms could include changes in areas such as worker rights, gig economy regulations, flexible working arrangements, and measures to ensure fair pay and conditions.

Full details are Available here, the deadline for responding is 11 July 2024.

“These proposals take advantage of our new regulatory freedoms having left the EU,” the Government explains, “and have the potential to deliver simpler, clearer regulations. This benefits businesses, workers, and the wider economy.”

The TUPE regulations implemented the EU’s Acquired Rights Directive in order to protect employees’ employment rights when the business or undertaking for which they work transfers to a new employer.

Proposed changes to TUPE

The Government notes that it was previously accepted that the TUPE regulations cover employees only and not “limb (b) workers”. However, the 2019 judgment of the employment tribunal in the case of Dewhurst v Revisecatch Ltd t/a Ecourier concluded that TUPE applies to limb (b) workers as well as employees.

People with limb (b) worker status are entitled to core employment rights (such as holiday pay and a minimum wage) but have increased flexibility in the way they carry out their work and therefore do not have all the rights available to employees.

Limb (b) workers are often referred to simply as “workers”.

The Government is proposing to amend the definition of “employee” in the TUPE regulations to clarify that they are not protected by the regulations. It believes that this will provide helpful clarity for businesses undertaking TUPE transfers where workers are involved.

It is also proposing to amend the TUPE regulations to clarify that an employment contract should only be transferred to one employer and should not be split between multiple employers.

Proposed changes to rules on European Works Councils

European Works Councils (EWCs) are consultative bodies that represent the European workforce of multi-national organisations. They are required under EU law where a company has 1000 employees operating over two or more European Economic Area (EEA) countries (EU Member States, plus Norway, Iceland and Liechtenstein) or 150 employees in two separate Member States.

The Government proposes removing this legacy of the UK’s membership of the EU by repealing the legal framework for EWCs in the UK, which will include a repeal of the current requirement to maintain existing EWCs.