TUPE: service provision changes
A recent EAT case involving, yet again, a local authority illustrates how easy it is to go wrong when deciding which employees transfer on a service provision change, particularly when dealing with managerial employees who may be involved in both servicing the client and running the business.
The EAT held that an employment tribunal erred when finding that three (effectively managerial) employees were assigned to the organised grouping of employees that transferred to the client on a service provision change. The tribunal should have considered the service provider’s organisational structure and what the employees were required to do under their contracts.
If you would like a checklist explaining when TUPE applies and the different obligations a business involved in the transaction may owe under the legislation, do get in touch.