The Employment Appeal Tribunal has for the first time considered the question of whether a TUPE transfer can occur where the ‘client’ is made up of more than one company and has confirmed that it can. The case involved a site maintenance company which employed a property manager to oversee works on the common parts of the estate. The site management contract was transferred to another company which engaged its own property manager.

The Employment Appeal Tribunal’s judgment makes clear that where multiple service users, such as tenants in commercial premises, having grouped together to commission such services (be it through an agent or relying on individual contracts) engage the services of a new site management company, they need to be mindful of the fact that those employed by the existing management company may transfer to the new service provider under TUPE. 

A copy of the full decision is available at: Ottimo Property Services Ltd v Duncan, EAT