TUPE 2, coming into force in October, is designed to encompass all 'service provision changes'. The DTI believes greater certainty will reduce disputes and transaction costs. But the draft regulations include exceptions, among which are contracts for supply of goods rather than services, and cases where clients buy in services from a contractor on a one-off basis. These could become new grey areas, provoking more litigation. Even more controversial is an exemption for professional business services such as accountancy on the basis that white-collar staff are 'less in need of additional legal protection' than those providing 'routine manual work'.
- Michael Burd and James Davies, Lewis Silkin solicitors, e-mail: email@example.com.