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IER Annual Employment Law Conference TUPE - Gold Plating or Gold Stripping. Jo Seery October 2012. Introduction. TUPE Purpose - protect rights of workers where change of employer Government proposals for Reform: Call for evidence on effectiveness of TUPE 2006

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Ier annual employment law conference tupe gold plating or gold stripping

IERAnnual Employment Law ConferenceTUPE - Gold Plating or Gold Stripping

Jo Seery

October 2012


Introduction
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?


Background to service provision change
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


Spc the uk s approach
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


So what is a service provision change
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


Service provision change 2
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


Service provision change 2 cont
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


Service provision change 3
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


Changes to contract
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


Dismissal 1
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


Dismissal 2
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


Conclusion
Conclusion

Way ahead – resisting change

Further information:

LELR

www.thompsons.law.co.uk


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