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Clause 23 - Employee owners

Part of Growth and Infrastructure Bill – in a Public Bill Committee at 12:15 pm on 6th December 2012.

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Photo of Ian Murray Ian Murray Shadow Minister (Business, Innovation and Skills) 12:15 pm, 6th December 2012

That is a significant intervention, and I hope the Minister heard it, because the TUPE arrangements are not referred to in the legislation. They have not been referred to in the consultation response or the impact assessment, so there is an issue about not only, as my hon. Friend the Member for City of Durham proposes, the transfer of an employee under TUPE into a different holding or subsidiary company, but about the opposite: if someone is on an employee ownership contract and transfers out, do they transfer out with the shareholding, or do they transfer it under a standard employment contract?

There are huge issues relating to transfer, and TUPE may not apply in some instances, if the same holding company that a person is employed by is merely transferring employees from one area of the business to another; because the employer in itself may be the same. That is why I put a question to the Minister about how to  prevent a holding company that directly employs the staff from merely transferring them into another part of the business.

I am delighted with the intervention, because I am unclear about how all those aspects of the matter would operate, and the Minister should give some clarity about how they fit together.