Dr. John McMullen, an expert in TUPE, is quoted as saying: “If you had a group of lawyers organized in a client law firm, and that client said, “I don`t want this law firm, I`ll name the law firm X,” tupe 2006 could apply in such a way that, contrary to what the client expects or wants— that lawyers would have the right to come forward to the newly created law firm. The definition of “organized group” can only be one person. Tariff conditions can be renegotiated after one year, provided that the overall contract is no less favourable to the employee. DUPE regulations preserve the terms and conditions of employees when a company or part of it is transferred to a new employer. Any provision of an agreement (whether an employment contract or not) is not applicable to the extent that it would exclude or limit the rights granted by the regulations. When a contractor is required to take care of staff at the conclusion of the contract, the contractor should also consider what will happen to that staff at the end of the contract. It is impossible to say with certainty whether TUPE will apply to the exit, either for legal reasons or for commercial reasons. For this reason, a contractor would be well advised to negotiate, as part of the agreement, compensation to the client with respect to the cost of any redundancies he might have to make, along with the cost of all the rights that workers can claim in connection with the dismissal or their employment, upon leaving the territory. 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 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.
When a client switches service providers, it may be a contractual term that TUPE applies and the new contractor is required to take care of the outgoing contractor`s staff. If the new contractor is required to admit that TUPE is valid as the duration of an agreement, it can be a costly concession and is an element to be considered in determining the value of the contract.