'U.K. law not to impact India Inc'

By agencies   |   Wednesday, 12 April 2006, 07:00 Hrs
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NEW DELHI: The apex body of Indian IT industry, Nasscom said that the recent changes in the U.K. law to protect the interests of workers in outsourcing contracts, is unlikely to have an adverse impact on Indian businesses.

The association’s President Kiran Karnik said, “I do not see any effect on Indian businesses, as the legislation applies only to those outsourcing cases which involve taking over of employees of an organization. Most of our companies have not entered into such deals.”

Karnik, however, admitted that so far the U.K. had been quite open to outsourcing despite pressures from the unions. “It is a new step to some degree, not pertaining to offshoring but to overall outsourcing,” he said.

It may be recalled that last week the revised Transfer of Undertakings (Protection of Employment) Regulations (called `the TUPE Regulations') came into force in the U.K.

These Regulations provide employment rights to employees when their employer changes as a result of a transfer of an undertaking.

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