The government has opened a Call for Evidence into TUPE, signalling potential reform of the current regime. For employers, this is an opportunity to influence future reform, particularly as the government looks to strengthen employee protections while improving the efficiency and usability of the rules.
Purpose of the Call for Evidence
As part of its Plan to Make Work Pay initiative to strengthen employment rights, the government committed to reviewing the Transfer of Undertakings (Protection of Employment) regulations (TUPE) to ensure it remains fit for purpose. The focus is on whether the current framework strikes the right balance between protecting employees and enabling business flexibility.
The Call for Evidence seeks information on how TUPE operates in practice, including:
- how frequently TUPE transfers occur;
- how effective and efficient the current regime is; and
- whether existing protections operate as intended during transfers.
Questions for consideration
The Call for Evidence invites responses on several practical issues:
- Current TUPE protections: how effectively the existing regulations balance employer needs and employee rights, such as collective agreements and pension entitlements, and whether the consultation requirements are sufficient.
- Clarity on when TUPE applies: if it is clear when a relevant transfer has occurred and the TUPE applies.
- Process: common challenges and suggestions for improvement.
- Guidance and support: how helpful the current guidance is.
- Terms and conditions of employment: whether the existing rules on changing employee terms and conditions are adequately clear and specific, and strike the right balance between employer and employee needs.
- Cost and impact: whether TUPE imposes disproportionate costs on businesses.
Reform on the horizon
The government will use the responses to inform development of policy options and intends to consult on any proposals to reform TUPE in due course. It has not proposed any specific reforms, but the scope of the Call for Evidence suggests a potential focus on simplifying the test for when TUPE applies, reducing administrative burdens and revisiting the restrictions on changing terms and conditions.
Implications for employers
Employers with experience of TUPE transfers may wish to consider responding. Organisations that regularly outsource, retender or restructure operations are well placed to highlight where the current regime creates uncertainty, cost or delay.
Early engagement may help shape any future consultation and ensure that business perspectives are reflected alongside the government’s aim of strengthening employee protections.
Next steps
The Call for Evidence closes on 1 July 2026. Details for submitting a response are available on the government’s website (here).
