Case Update – TUPE: Service Provision Change

For a service provision change to apply, the legal test is that there must have been, prior to the change, a so-called 'organised grouping of workers' whose principal purpose was to carry out relevant activities for a relevant client.

Last week the EAT handed down a judgment in Amaryllis Ltd v McLeod, confirming that the principal purpose of any organised grouping of workers must be considered at the point immediately before the change.

Background and Employment Tribunal Decision

Millbrook Furnishings Ltd had previously carried out work for the MoD, renovating wood and metal furniture. However, from 2003-2008 this work had been carried out by Millbrook, as a sub-contractor of Amaryllis. The MoD awarded new contracts, and in 2014 the contract was retendered amongst four contractors. Millbrook was then unsuccessful but Amaryllis won the contract.