IER Annual Employment Law Conference TUPE — Gold

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 – Government response 14 th September 2012 • What’s the beef with service provision changes?

Background to Service Provision Change • Acquired Rights Directive (ARD) – standard transfers - Landsorganisationen i Danmark Ny MØlle Kro 1989 ICR 330 - Süzen v Zehnacker Gebaudereinigung Gm H Krankenhausservice [1997] ICR 662 - Spijkers Gebroeders Benedik Abattoir CV and Anor [1986] 2 CML R 296 – the multifactorial test

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 Mc. Cormick and Ors [2005] ALL ERO 14 • Government Consultation 2005 • Ongoing problems - CLECE SA v Maria Socorro [2011] IRLR 251 - Ivana Scattalon v Ministero Adele

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 • 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. • 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 • 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 • 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] UKSC 26 • Pensions - Beckmann v Dynamco Whicheloe Mac. Farlane Ltd [2003] ICR 50 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 • 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 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 Way ahead – resisting change Further information: LELR www. thompsons. law. co. uk