Caution - Incompetent/deliberate failure to provide information on transfer

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

Please click here to view Helen Barney's profile


Related articles

An appellant whose appeal against deportation on human right grounds failed in the Court of Appeal and following the refusal of leave to appeal from the Supreme Court nevertheless succeeded in obtaining leave to remain from the UK Government after making a complaint to the Strasbourg Court....

Date: Mon, 29 Nov 2021
Once again, the Home Office has been busy. Having brought in a comprehensive package of regulations, most notably in 2008 and 2012, it now proposes to make further sweeping changes to the way that misconduct and performance procedures are handled....

Date: Wed, 04 Dec 2019
Non-Disclosure Agreements in Financial Remedy Proceedings...

Date: Tue, 19 Nov 2019