TUPE - Tesco Policy

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POLICIES FOR OUR PEOPLE 1.9

TUPE

WHAT IS IT?

With the increase in competitive tendering over the last decade, it is more important than ever to understand the intricacies of the Transfer of Undertaking (Protection of Employment) Regulations (TUPE). Failure to comply with TUPE can be extremely costly and can also have a detrimental effect on the workforce.

These regulations give legal protection to employees working for a business that transfers from one owner to another as a going concern, e.g. when Tesco bought William Low, T&S Convenience stores, or when we have contracted out our cleaning and catering operations.

In essence, the new employer "steps into the shoes" of the old employer and takes over all the rights and obligations from the transferring employees' contracts (excluding pension rights).

OUR APPROACH

There are seven steps which should be followed if we are in a position of taking over another company or selling on part of our business to another employer:

* Communication

   As soon as we know there is a pending transfer. we must communicate with the
   affected employees through the Union (or with employee representatives) to
   inform them of what might happen and why.

* Exchanging information

   Meetings should be arranged between Tesco and the old/new employer to discuss
   how we will exchange information.

   If employees are transferring to us, we need to know all the details about their
   current terms and conditions including copies of staff handbooks, union agreements
   etc.

   Although pensions are not covered by the regulations, we must pass any previous   
   pensions details to the pensions department as soon as possible so that they can
   give advice to the transferring employees.

   If it is our staff that are being transferred, we have to provide details of all our
   terms and conditions to the new employer so that they can manage the transfer
   effectively.

* Compare terms and conditions

   If the transfer is to Tesco, we must analyse all the employment information
   obtained, to identify how the terms and conditions compare with ours and decide
   how we are going to deal with terms that may be better than ours.

   We may either protect terms that are better than ours in some way. or. if we
   cannot practically provide the term, then we must make a compensation payment.
   Employees must not be disadvantaged in any way as a result of a transfer, and
   they cannot waive their TUPE rights.

* Consultation

   Consult with the Union/employee representatives to discuss our proposals and to
   reach agreement.

* Discuss details individually

   Communicate transfer details to employees and discuss individual terms and
   conditions including shifts, rates of pay, benefits etc. If any employee objects to
   the transfer, explain their rights under the act, (explained further on).

* Preparing for the Transfer

   Prepare for the transfer by completing all the documentation required to transfer 
   employees onto or off the Tesco payroll, and by brie?ng line managers.

* Welcome

   When the transfer takes place, welcome the new staff to Tesco, carry out an
   induction and any relevant training and issue new terms and conditions within
   4 weeks of the transfer.

   Check all staff have the required right to work in the UK documents on their ?le,
   and if not, ask them to produce evidence so that we can place it on file. By law
   this must be done within 28 days of the transfer.

BENEFITS

When employees TUPE transfer into our business (Tesco Stores Ltd), they bring their length of service with them, and hence have the right to equivalent benefits to existing Tesco staff. (TUPE law also protects the benefits they enjoyed under their old employer. This means that if we do not offer the benefit within Tesco, we have to 'buy out' the benefit).

Privilegecard:

Entitled to receive it immediately on joining, so long as they have at least 6 months service with their old company. Please e-mail staff.discount@uk.tesco.com to ensure the card is produced as speedily as possible.

Shares in Success:

TUPE transfer employees will be entitled to shares so long as they have transferred to Tesco by the qualifying date, and have at least 1 year's serviceby the qualifying date (usually the last Saturday in February).

Save As You Earn:

May join the scheme when it is offered, so long as they have at least 1 year's service with their old company, and the transfer has been completed by the invitation date.

Buy As You Earn:

May join the scheme immediately the transfer has completed, so long as they have at least 3 months' service.

Childcare Vouchers:

May join immediately the transfer has completed, so long as they meet the rules of the scheme.

Long Service Awards:

TUPE transfer employees become eligible for an award on subsequent anniversaries after they have transferred, i.e. there are no retrospective Awards made, Personnel Managers should check with longservice.awards@uk.tesco.com that qualifying employees have been
picked up.

Life Assurance:

Eligible as soon as they transfer.

Pension:

TUPE law requires us to offer a minimum level of pension provision where transferred employees were previously in an occupational pension scheme. Pension Builder is better than that required by law, so in most cases the Pension department write to the transferring employees and invite them to join the scheme. However, in some TUPE transfers we do not offer Pension Builder (because it is better than the legal minimum). If this is the case, please contact the Pensions department for advice.

WHAT THE LAW SAYS

The new employer cannot pick and choose who to take with a transfer of undertaking.

All employees who spend more than 50% or more of their time working in the business automatically transfer across.

In general, the new employer is not allowed to impose any Changes that put an employee in a worse position.

Employees transfer with:

* continuous service;

* all their fundamental terms and conditions protected;

* protection against being dismissed purely because of the transfer, irrespective of
   length of service;

* the right to object to the transfer. If they do, their contracts "come to an end by
   legal operation of the law". (This means that they do not have to give notice and
   will not have any rights to bring claims after they have left. They are only eligible
   for normal leaver payments as if they had resigned). They must not be allowed to
   continue working past the date of the TUPE (even if they are working their notice)



Further information regarding TUPE can be found on the following ACAS link:

Acas - Transfer of undertakings (TUPE)