The associations also said that councils should be indemnified against any claims and caled for an end to the confusion between transfer law and the Department of the Environment's guidance (circular 10/93) on what may constitute anti-competitive behaviour.
The associations stressed that councils are looking for more certainty about the process and for equal treatment of both council direct service organisations and private firms.
The government conceded that TUPE is causing uncertainty, the asociations said.
'What we need is unambiguous advice that ensures a level playing field for private sector businesses and DSOs alike.
We must also have an assurance that the government will meet the cost of any legal claims arising from its failure to properly implement European law.'