Gerald Jones MP

Putting Merthyr Tydfil and Rhymney at the Heart of Parliament

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BEIS Questions - 13th March 2018

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Earlier today, I questioned the Minister for Business, Energy and Industrial Strategy on Carillion:

Gerald Jones MP: Whether he is taking steps to safeguard the employment of people who were working under private sector Carillion contracts at the time of that company’s liquidation.

Andrew Griffiths MP (Parliamentary Under Secretary of State for BEIS): The official receiver and special manager are working to ensure an orderly transition by facilitating the transfer of contracts. As of 12 March, 8,521 jobs have been safeguarded and 1,536 people have been made redundant, sadly, through the liquidation. My right hon. Friend the Business Secretary has set up a taskforce, bringing together trade associations, bankers and representatives of Government to ensure that we support the Carillion supply chain. The taskforce has delivered a range of supportive measures, including more than £900 million of support from UK lenders.

Gerald Jones MP: Let me seek some further clarification. If there is any doubt that TUPE applies, can the Government confirm that they will instruct the official receiver to transfer employees on private sector contracts as if TUPE applied? Will the Government also ensure that trade union recognition is transferred with those staff?

Andrew Griffiths MP: I thank the hon. Gentleman for that question and refer him to the recent Westminster Hall debate, when we discussed at some length the legal responsibilities in relation to TUPE, which do not apply in many cases during a liquidation. Transferring employers may well decide to offer terms to transferring employees that recognise existing employment rights, terms and conditions. The Government are focused on ensuring that transferred employees are no worse off, and the official receiver is doing all he can to facilitate this wherever possible.

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