John McMullen surveys cases on service provision change, transfer of employment rights, & objection to transfer
Can there be a service provision change (SPC) within the meaning of regulation 3(1)(b) of TUPE, even though the client is not obliged to guarantee any level of work to the service provider? Yes, said the Employment Appeal Tribunal (EAT) in Lorne Stewart Plc v (1) Hyde (2) Crowley (3) Planned Maintenance Engineering Ltd t/a Carillion (UKEAT/0408/12).
Carillion held a contract for maintenance work for Cornwall County Council under a “framework agreement”. Work was given to Carillion under this agreement, although the council was empowered to place it elsewhere and, also, Carillion had the ability to decline work offered to it. But in practice, the council gave all the work to Carillion and Carillion accepted it when given. The contract came to an end and, after a retendering process, Lorne Stewart Plc (LS) took over the service under an agreement containing similar provisions to the expired agreement with Carillion. LS refused to take Messrs Hyde and Crowley under TUPE. LS denied there was a SPC.
