John McMullen talks TUPE & service provision change
It is a pre-requisite for a service provision change TUPE transfer that there is, immediately before the service provision change, an organised grouping of employees which has, as its principal purpose, the carrying out of activities on behalf of the client concerned (Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246), reg 3(3)(a)(i)).
Client service
In Eddie Stobart Ltd v Moreman UKEAT/0223/11, [2012] IRLR 356 it was held by the Employment Appeal Tribunal (EAT) that an “organised grouping of employees” means a client team put together by the service provider specifically to serve the client for whom the service is provided.
Eddie Stobart Limited is a warehousing and logistics service provider. It had 35 employees at one site in Nottinghamshire, servicing at least five clients. The contracts reduced to two, the principle one relating to a customer called Vion. Eddie Stobart closed the site. FJG Logistics Limited acquired the Vion work. Eddie Stobart took the view that all employees engaged wholly or for 50% plus of their time on work for Vion should transfer
