Tupe Agreements

The new law of January 2014 also made a substantial change in the impact of a transfer on collective agreements. With regard to collective agreements built into the contracts of transferred workers, a « static » approach has now been adopted. Therefore, if a transfer of TUPE occurs after January 31, 2014 and the terms of a collective agreement change after the transition date and the purchaser does not participate in the collective bargaining process that introduced the amendment, the amendment does not apply to transferred workers. Two amendments to the TUPE regulations specify when the terms of the collective agreements can be changed in a transfer situation. Collective agreements in force at the time of the transfer are also transferred to the new employer. These include terms of employment negotiated through collective bargaining and broader labour relations. For example, the collective dispute procedure, school leave, training of union representatives, negotiated redundancy procedures or workplace safety regimes and flexible work regimes. If an independent union has been recognized by the outgoing employer for the transfer of workers, recognition is also passed on to the incoming employer. Since 2014, tariff conditions can be renegotiated after one year, provided that they are generally no less favourable to the employee. Recent TUPE reforms contain new measures to change collective agreements. The new rules now contain the current case law on how certain collective agreements are passed on to a new employer. For employers, it is important to be sensitive to the transfer of collective agreements. They need to look not only at the legal implications of rule changes, but also at all labour relations considerations.

Tariff conditions can be renegotiated after one year, provided that the overall contract is no less favourable to the employee. In certain circumstances, contractual changes made by the new collective agreements agreed by the outgoing employer are not necessary as a result of a transfer. Collective agreements are generally negotiated between an employer and a union on issues such as pay, working time and conditions. In the event of a transfer, these agreements are transferred to the incoming employer. Detailed information on all recent TUPE reforms, including those dealing with collective agreements, can be found in the 2014 TUPE [165kb] amendments to TUPE. The outgoing employer is required to provide the arriving employer with written information about the transferred workers, including identity, age, employment data, disciplinary and complaint documents, workers` rights and collective agreements, as well as all related rights and commitments that are transferred. This information should not be provided less than 28 days before the transfer, although the new employer will in practice endeavour to obtain this information much earlier. The fundamental objective of the TUPE Regulation is to preserve the conditions of employment of workers in the event of a transfer to another employer. The law prevents workers from accepting changes to their business conditions if the transfer is the source of the change.