Thu, 23 May 2013
A deliberate or incompetent failure to provide up-to-date information to the incoming company on a TUPE transfer can result in significant financial penalty:
Charter Security and Profile Security were involved in a tendering exercise for concierge services. Charter, the existing contractor, provided TUPE information indicating a rate of pay of £6.50 per hour for staff. Based on the information provided the tender was submitted and Profile won the contract. 3 days prior to transfer, Charter ‘updated’ the TUPE information, to include a rate of £7 per hour.
The Tribunal rejected the reasons given for the late change in information to staff rates of pay as ‘incredible’ and insufficient to justify the breach of TUPE Regulations (Reg. 11(5)). The Tribunal awarded compensation of £40,331 to Profile, reflecting the loss suffered as a consequence. There is no reported case law in this field and the Tribunal’s robust decision in favour of my client demonstrates that the TUPE Regs can be an effective weapon in the fight against sharp practice or incompetence.
Profile Security Services Ltd v Charter Security Plc Case No: 3203710/10
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