TUPE Requirements
Discussion
Been informed that a large contract at work has not been won and the the company that paid us to do it before hand are now going to do the job in house. My company believes this falls under TUPE and the employees (around 70) who's only role was to do this work should be taken on by the other company. This company does not agree with that and believes it does not fall under TUPE. Do you guys think that the company is required to take on our employees or not?
Sounds like it applies to me from what you say. If the service is transferred to A N Other service provider (even in-house) then TUPE applies. If the incumbent supplier gets acquired by another party who then runs the service then TUPE doesn't apply. As it's just a change of contracted supplier that you seem to be describing I would be interested to hear why they are claiming it doesn't apply. Suspect they are running scared of the cost liability of an additional 70 employees!
Sorry, what? You work for a company that used to provide a service to another company. That other company has now decided they don't want your company to do it any more.
Is that right? If so, there can't possibly be any employment (or TUPE) requirements on the 'other' company. What am I missing?
Is that right? If so, there can't possibly be any employment (or TUPE) requirements on the 'other' company. What am I missing?
Page 7 (going by the printed page numbers) of the first pdf link (handling TUPE transfers) on this page:
http://www.acas.org.uk/index.aspx?articleid=1655
TUPE specifically does apply to "insourcing" of contracts.
http://www.acas.org.uk/index.aspx?articleid=1655
TUPE specifically does apply to "insourcing" of contracts.
Mr Classic said:
Many thanks, especially johnnytheboy, feel a bit safer knowing that they are required to make proper arrangements for us when the contract ends.
Sometimes the hours of listening to the mind-numbingly dull post-work anecdotes of my OH actually impacts on my brain. The ACAS website is a very good resource for this kind of thing, as a rule.
Doofus said:
2 sMoKiN bArReLs said:
The facts about TUPE legislation
From the information given by the OP, TUPE is completely irrelevant. Just based on my experience.
We had the contract to warehouse & distribute motorcycles for a Japanese brand in the UK. Some of our employees worked solely on this contract. At the end of the term the contract went out to tender & we lost it. All the employees TUPEd across to the successful bidder. Must be a similar scenario?
We had the contract to warehouse & distribute motorcycles for a Japanese brand in the UK. Some of our employees worked solely on this contract. At the end of the term the contract went out to tender & we lost it. All the employees TUPEd across to the successful bidder. Must be a similar scenario?
rgw2012 said:
Er no, the service is transferring back in house - TUPE 100% applies. Why do think what he has said makes it irrelevant?
We don't know what the service is, nor the contract under which is is provided. If I pay an IT company to look after my networks, and then later decide to do it myseof, I am under no obligation whatsoever to employ their staff to do it for me.
Doofus said:
rgw2012 said:
Er no, the service is transferring back in house - TUPE 100% applies. Why do think what he has said makes it irrelevant?
We don't know what the service is, nor the contract under which is is provided. If I pay an IT company to look after my networks, and then later decide to do it myseof, I am under no obligation whatsoever to employ their staff to do it for me.
Legal experts on the net say (by way of example):
Increasingly, Registered Providers of social housing are bringing their outsourced services back in-house. This can be due to poor service, lack of efficiency from the contractor, or perhaps just a view that the service can be better stream-lined when managed and resourced internally.
When insourcing services, Registered Providers must be aware of TUPE and its implications. TUPE could automatically transfer the contractors’ employees to the Registered Provider, and brings with it legal and contractual consequences.
Below we set out the considerations for Registered Providers when insourcing. We outline when TUPE applies and look at how Registered Providers can anticipate the potential legal risks.
Does TUPE apply?
The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) governs the rights of employees and the obligations of employers when a business or service transfers from one entity to another.
TUPE applies where there is a change in relationship between a client and their contractors. This is known as a service provision change and includes where a service is contracted in or insourced.
Assuming that the conditions for a service provision change are met, TUPE will apply to an insourcing. To ensure that they are not exposed to unacceptable risk, Registered Providers will need to keep the resulting legal and contractual issues on their radar.
Increasingly, Registered Providers of social housing are bringing their outsourced services back in-house. This can be due to poor service, lack of efficiency from the contractor, or perhaps just a view that the service can be better stream-lined when managed and resourced internally.
When insourcing services, Registered Providers must be aware of TUPE and its implications. TUPE could automatically transfer the contractors’ employees to the Registered Provider, and brings with it legal and contractual consequences.
Below we set out the considerations for Registered Providers when insourcing. We outline when TUPE applies and look at how Registered Providers can anticipate the potential legal risks.
Does TUPE apply?
The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) governs the rights of employees and the obligations of employers when a business or service transfers from one entity to another.
TUPE applies where there is a change in relationship between a client and their contractors. This is known as a service provision change and includes where a service is contracted in or insourced.
Assuming that the conditions for a service provision change are met, TUPE will apply to an insourcing. To ensure that they are not exposed to unacceptable risk, Registered Providers will need to keep the resulting legal and contractual issues on their radar.
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