TUPE may not apply to multiple contractors

Employment Appeal Tribunal has decided that where there are multiple contractors replacing a single one, TUPE may not apply.   http://tinyurl.com/ceatln (Clearsprings Management Ltd v Anskers and Ors).

There are contractors who took on contracts on a TUPE basis accepting full liability for staff, who run the risk of being unable to pass that liability on at the end of that contract.

At the moment this seems to be a particular feature of contracting with the Government as a client! We are aware of many organisations who were required to take in staff with full service in order to get the contract in the first place, who will now retain the liability when the contract changes hands.

This will undoubtedly spread to the private sector and will cause further pressure on businesses trying to survive by contracting with the government.

We have been aware of this trend in case-law for some time and have come up with some strategies to limit the effect of this in certain circumstances.   Contact info@irenicon.co.uk, www.irenicon.co.uk tel: 08452 303050 fax: 08452 303060

If your contracts are up for review/renewal or if you are pitching for service contacts that could potentially be split among rival suppliers at another date, you should take urgent steps to make sure you have a plan to handle this.   If you want help modelling your pitch or considering the options on the staff side we can work alongside you, even at a fixed fee.

See our previous blog

1 Comment

Filed under TUPE

One response to “TUPE may not apply to multiple contractors

  1. Pingback: TUPE and the Big Society | Employment law in a mad world

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