TUPE: service provision changes

A recent Employment Appeal Tribunal (EAT) case illustrates how easy it is to go wrong when deciding which employees transfer on a service provision change, particularly when dealing with managerial employees who may be involved in both servicing the client and running the business.

The EAT held that an employment tribunal erred when finding that three (effectively managerial) employees were assigned to the organised grouping of employees that transferred to the client on a service provision change. The tribunal should have considered the service provider’s organisational structure and what the employees were required to do under their contracts.