The following article relates to a decision of the Employment Appeal Tribunal which provides further clarification on circumstances when the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) might apply –
In simple terms, where there is a transfer of an undertaking (which might be a business or a contract) any employees are entitled to be transferred from the transferor to the transferee on the same terms of employment.
If your business provides outsourced services to businesses, government etc, you may be affected by TUPE.
The Article makes it clear that where one sub-contractor replaces another then TUPE may apply. For example, if your business provides, say, catering or cleaning services to organisations and it replaces another catering or cleaning company who employs staff to provide such services, then the staff will have the right to be transferred to your company.
It is therefore crucial to have the appropriate protections within the contract with your client.
This should not be relied upon for legal advice. If you would like any further information or advice please email email@example.com.