‘or section 36E of the principal Act’.
This is a simple amendment, and I shall make a short speech. Subsection (8) refers to the Transfer of Undertakings (Protection of Employment) Regulations 1981, and says that
“nothing in this section shall affect the operation” of those regulations, which are important to the employees of the funds that are to be dissolved.
Section 36E, which we have agreed to add to the principal Act, gives the power to the Secretary of State to make directions on the employment of staff in particular. The directions may also have consequences on their terms and conditions of employment. I am looking for an assurance from the Minister that nothing in that new section will affect the operation of the Transfer of Undertakings (Protection of Employment) Regulations 1981.
It seems to me that amendment No. 103 seeks to ensure that any directions given under new section 36E do not affect the Transfer of Undertakings (Protection of Employment) Regulations 1981—more commonly referred to as TUPE. Presumably, the concern is that the financial directions under section 36E(3) relating to the employment of staff may affect the application of TUPE. If that is correct, I am happy to tell the hon. Gentleman that the amendment is unnecessary, as directions cannot affect the operation of any legislation including TUPE.
Whether TUPE applies to a particular transfer is a matter of law depending on the precise circumstances. However, whether it applies or not, Government policy on transfers within the public sector is that all employee rights will transfer to the new body. That is set out in the Cabinet Office’s statement of practice on staff transfers in the public sector. I hope that this explanation provides the hon. Gentleman with the assurance that he seeks, and that he will withdraw the amendment.