Important new ruling on TUPE services

Thu, 23 Apr 2015

The Employment Appeal Tribunal has recently ruled that for the purpose of the TUPE Service Provision Change rules in certain circumstances a “client” is not limited to one legal entity and can include a group of clients who act in concert.  

The case concerned the transfer of maintenance services in a private housing estate in east London.  Each block of flats was managed by a separate company. The common parts were managed by a group of managing agents. When the maintenance contract came up for renewal, some of the companies engaged different contractors but the majority, as well as the managing agent, used the same new contractor. 

The case, Ottimo Property Services Ltd v (1) Mr G Duncan and (2) Warwick Estate Properties Ltd (EAT/0321/14), has now been sent back to the Employment Tribunal for a further hearing.  

Anthony Korn of the No5 Employment Group represented the successful appellant.

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