Hunter v McCarrick [2012] EWCA

Service provision change examined

Issue

  • The application of Regulation 3(1)(b) TUPE and requirements for a “service provision change”

Scenario

  • The out-sourcing of property management services, combined with the appointment of Law of Property Act receivers over the property portfolio

Case significance

Clarification that a service provision change within Regulation 3 (1)(b) involves:

  • the same activities;
  • carried out by different contractors;
  • for the same client

If the client changes, such as upon the appointment of receivers, there is no service provision change

Points to note

  • A change of service provider coupled with a change of client could potentially still be a traditional TUPE transfer if there is a transferring business which retains its identity.
  • The government is currently reviewing TUPE and service provision changes in particular.
  • Ensure, when involved in outsourcing, that potential liabilities are properly identified.