§ Mr. Barry FieldTo ask the Secretary of State for Employment (1) what representation he has made to the EEC about the Transfer of Undertakings (Protection of Employment) Regulations 1981; and when he expects a response;
(2) what are the implications for the Transfer of Undertakings (Protection of Employment) Regulations 1981 of the revision of the definition of undertakings, with particular reference to compulsory competitive tendering;
(3) what proposals he has to recognise those contractual liabilities arising from redundancy liabilities under the Transfer of Undertakings (Protection of Employment) Regulations 1981 which may be incapable of being passed to incoming contractors if the regulations are changed.
§ Mr. OppenheimVarious representations have been made to the European Commission about the 1977 acquired rights directive, to which the regulations give effect, including concerns about its application to the contracting out of activities and the damaging effect it may have on the rescue of insolvent businesses. In September the Commission produced a proposal to amend the 1977 directive which aimed, inter alia, to distinguish between the transfer of only an activity of an undertaking and the genuine transfer of an undertaking; and to provide for greater flexibility in insolvency situations.
The proposal is still under discussion. It is too early to say when agreement will be reached or what changes to the regulations, or transitional arrangements, may be required.
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