Précis –In Pannu and others v Geo W King (in liquidation) and others UKEAT/0021/11, the EAT held that there was no service provision change and so no relevant transfer under TUPE as the relevant activities consist wholly or mainly of the supply of goods for the client’s use.

What? There is no service provision change under TUPE if the relevant activities consist wholly or mainly of the supply of goods for the client’s use.

So What? When analysing the “activities”, it is necessary to make an assessment for TUPE purposes in relation to the relationship between the contractor and the client, and not the employee and the contractor.

In Pannu and others v Geo W King (in liquidation) and others UKEAT/0021/11, the EAT upheld an employment tribunal finding that there was no service provision change and so no relevant transfer under TUPE when a company changed its supplier of vehicle parts.

This is because under the TUPE regulations there is no service provision change if the relevant activities consist wholly or mainly of the supply of goods for the client’s use. Here, the fact that the employees were providing a service to their employer (in making the vehicle parts) did not prevent the activities being the supply of goods. The activities in question were the supply of the finished goods to the client. In other words, when analysing the “activities” it is necessary to make that assessment in relation to the relationship between the contractor and the client, and not the employee and the contractor. This exclusion may be relevant when considering whether or not TUPE will apply when outsourcing or transferring contracts or bringing them back in house.