Tuesday, April 11, 2006

TUPE Not to Have an Adverse Effect on Indian BPO Firms – UK DTI

The UK Department of Trade and Industry (DTI) has issued a clarification that the latest version of the country’s Transfer of Undertakings Protection of Employment (TUPE) regulations is not targeted to adversely affect outsourcing to India.

TUPE regulations are applicable when an employee from a company is transferred to a contractor as part of a procurement deal. At present, during such a transfer, the contractor bears responsibility of ensuring the rights of the transferred employee and is also liable to pay damages if these rights are not respected. However, the DTI stated that UK employers are unlikely to move their employees to India while outsourcing business functions to Indian firms. They are most likely to be either re-assigned in UK only or the employees might agree to be made redundant. In addition, DTI pointed out that the new regulations apply only to UK companies and not to Indian firms.

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