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 M Øll e 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 -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 Ivana Scattalon v Ministero Adele Istruzione dell Universita della Ricerca C-108/2010

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] 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 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