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IER Annual Employment Law Conference TUPE - Gold Plating or Gold Stripping

Join the IER Annual Employment Law Conference to explore the implications of TUPE and service provision changes in employment law. Gain insights into the latest government proposals and ongoing issues.

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IER Annual Employment Law Conference TUPE - Gold Plating or Gold Stripping

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  1. IERAnnual Employment Law ConferenceTUPE - Gold Plating or Gold Stripping Jo Seery October 2012

  2. Introduction TUPE • Purpose - protect rights of workers where change of employer • Government proposals for Reform: • Call for evidence on effectiveness of TUPE 2006 • Government response 14th September 2012 • What’s the beef with service provision changes?

  3. Background to Service Provision Change • Acquired Rights Directive (ARD) – standard transfers • Landsorganisationen i Danmark Ny MØlle Kro 1989 ICR330 • Süzen v Zehnacker Gebaudereinigung Gm H Krankenhausservice [1997] ICR662 • Spijkers Gebroeders Benedik Abattoir CV and Anor [1986] 2 CML R296 – the multi-factorial test

  4. SPC – The UK’s approach - P&O Trans European Limited v Initial Transport Services Ltd and Ors [2003] IRLR 128 - Scottish Coal Company Ltd v McCormick and Ors [2005] ALL ERO14 • Government Consultation 2005 • Ongoing problems - CLECE SA v Maria Socorro [2011] IRLR 251 - Ivana Scattalon v Ministero Adele Istruzione dell Universita della Ricerca C-108/2010

  5. So what is a Service Provision Change? • Organised grouping of employees situated in GB which has, as its principal purpose carrying out activities on behalf of the client. • Outsource to a new contractor • Subject to a change of contractor • Brought back in-house

  6. Service Provision Change - 2 • Have the activities continued? - Nottinghamshire Health Care NHS Trust v Hamshaw and Others UKEAT/0037/11 - Johnson Control Limited v Campbell and Anor UKEAT/0041/12

  7. Service Provision Change – 2 cont. • What happens when the activities are split amongst different contracts? - Kimberley Group Housing Ltd v Hambley [2008] IRLR/682 - Enterprise Management Services Ltd v Connect-Up Ltd UKEAT/0462/10 • Organised grouping of employees - Eddie Stobart Ltd v Moreman and Ors UKEAT/0223/11 - Argyll Coastal Services Ltd v Sterling and ors UKEATS/0012/11

  8. Service Provision Change 3 • When does a Service Provision Change amount to the provision of goods? - Pannu and Ors v Goe W King Ltd (In Liquidation) and Ors UKEAT/0023/11

  9. Changes to Contract • All liabilities arise under or in connection with, the contract of employment transfer to the transferee • Daddy’s Dance Hall principles in TUPE 2006 • Collective agreements - Parkwood Leisure Ltd v Alemo-Herron and ors [2011] UKSC26 • Pensions - Beckmann v Dynamco Whicheloe MacFarlane Ltd [2003] ICR50 - Proctor and Gamble Co v Svenska Cellulosa Aktiebolaget and Anor [2012] IRLR 733 • Pensions Act 2004 • Transfer of Employment (Pension Protection) Regs 2005

  10. Dismissal - 1 • An employee is automatically unfairly dismissed where sole or principal reason for the dismissal is the transfer or a reason connected with the transfer that is not an ETO reason entailing changes in the workforce (Reg 7) • ETO reason must be a change in numbers of the workforce or a change in the job function - Berriman v Delabole Slate Ltd

  11. Dismissal – 2 What constitutes “workforce”? • Single person - Spaceright Europe Ltd v Baillavoine and Anor UKEAT 0339/10 • Franchisees - Meter U Ltd v Ackroyd and Ors [2012] ICR 834 What about the ETO reason? - Manchester College v Hazel [2012] UKEAT 13612

  12. Conclusion Way ahead – resisting change Further information: LELR www.thompsons.law.co.uk

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