A need to re-think law and practice on a change of contractor

• United Kingdom

• Employment law

30-03-2021

A recent Employment Appeal Tribunal decision has overturned established understanding of TUPE law on a change of contractor (a so-called “service provision change”), concluding that affected employees may transfer employment to not one but, potentially, several employers, according to where the work in which they were engaged transfers.

In practice, outgoing and incoming contractors (and their customers) must now be particularly alert to the work employees are undertaking prior to any outsourcing and the extent to which this may subsequently become fragmented across multiple contractors, post-transfer. This will not only require careful legal analysis but could raise potentially difficult practical issues for employers. It is vital that these questions are addressed as early as possible in advance of a tendering process or the rundown of the contract, to minimise scope for dispute, unexpected cost and the risk of disruption to service continuity.    

This ES webinar provides a uniquely practical insight for employers into the case of McTear Contracts Limited v Bennett and preceding ECJ case of Govaerts. With an expert panel from our employment and commercial teams, we consider the primary issues raised by this latest development; identify key commercial questions and address essential contractual aspects and drafting considerations.