Joint service provider Enterprise Management Services took steps to improve productivity, efficient and costs when it became clear that its client was going to invite tenders for a single service provider. Enterprise Management Services was successful on the re-tendering exercise so the employees of the joint service provider transferred to it. Enterprise Management Services then started consultation with them regarding the same changes to terms and conditions which had been agreed with its own employees. 20 plus employees were dismissed when they did not agree to the changes. Their dismissals were held not to be unfair as Enterprise Management Services was concerned with improving productivity and efficiency and they were not dismissed for a reason connected with a transfer.
Key point: This case suggests that there is much greater flexibility post TUPE transfer for changing employment terms, than has been assumed, although this will be fact sensitive.