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TUPE: Outsourcing: back to square one?

04 May 2012  

A number of recent decisions suggest that the EAT is taking a more restrictive approach to when TUPE applies to a service-provision change, report Kate Barker and Rob Collier-Wright

Arguably the key change brought about by the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) was the adoption of new provisions confirming that TUPE would apply to situations involving a service provision change. Under the preceding TUPE Regulations (TUPE 1981), which implemented the 1977 EC Acquired Rights Directive, an automatic transfer of employees would only occur on the transfer of an undertaking, business or part of an undertaking or business. However, it later became well established that a change of contractor occurring in an outsourcing context could also constitute a ‘relevant transfer’, as shown in the ECJ case of Schmidt v Spar [1994].

Additional Info

  • Case(s) Referenced:

    Argyll Coastal Services Ltd v Stirling & ors [2012] UKEAT 0012/11/1502

    Clearsprings Management Ltd v Ankers [2009] UKEAT/0054/08/2402

    Eddie Stobart Ltd v Moreman & ors [2012] UKEAT 0223/11/1702

    Enterprise Management Services Ltd v Connect-Up Ltd & ors [2012] IRLR 190

    Hunter v McCarrick [2011] UKEAT/0617/10/1312

    Johnson Controls Ltd v Campbell & anor [2012] UKEAT/0041/12/1402

    Metropolitan Resources Ltd v Churchill Dulwich Ltd [2009] ICR 1380

Last modified on 16 July 2015