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COMMENT
Legal Matters
TUPE or not TUPE? That’s the question, but too few people know the answers! Let me explain...
Martine Nathan
T
he Government’s TUPE Regulations ensure that when a customer changes
supplier, the employees working on the contract move to the new supplier. This means that if you are bidding for any outsourcing supply or services contract you need to be aware of whether the TUPE regulations will apply. If they do, you will inherit additional costs and liabilities.
It doesn’t matter if this is in the context of a first or second generation outsourcing, or even an outsourced piece of work
moving back in-house. TUPE provides strong protection for employees. In the old days, outgoing contractors could dismiss staff working on the contract. TUPE allows staff to keep their jobs, albeit with a different employer. Because incoming employers inherit all employee costs under TUPE, customers usually want strong protection to ensure the new supplier bears these costs. Customers may also want incoming suppliers to bear staff costs on exit, to make their negotiations easier next time round.
If you are asked to bid on a ‘non TUPE’ basis, beware. TUPE will apply more often than not. Having won a ‘non-TUPE’ tender, suppliers
THE IMPORTANCE OF TRAINING
By Chris Burney, Head of Retail Sales at
Daisy: After receiving an email requesting my attendance for a product training session I inwardly groaned because I didn’t have time to sit through a presentation. I had work to do. But I knew only too well that keeping abreast of the latest developments within our company and the industry was vital if we wanted to stay ahead of the game.
As a manager it is important to portray a positive attitude towards education and learning in order for the team to appreciate the value it holds. If you’re not going to take it seriously, why should
they? While training may be costly and time-consuming, it is a vital element of any business looking to constantly improve and
can inherit the outgoing contractors employees under TUPE anyway. Not surprisingly, customers are unsympathetic to a request for a price adjustment. TUPE can be a real headache for incoming contractors. My advice is simple: Before putting in your bid get an understanding of the TUPE position and negotiate the right cost-sharing plans for staff. Better to do this in advance rather than after the bid has been accepted!
• Teacher Stern is writing a column in each edition of
Comms Dealer during 2010. For topical suggestions or to register for legal updates and seminars please email Martine Nathan:
m.nathan
@
teacherstern.com.
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When sitting in a training session, don’t doodle or think about that evening’s dinner. Consider how you can use the imparted information to equip your sales force with the necessary tools to make sales. Do this, and that three hour training session will not be a waste of time.
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