TUPE Takeaways: What Is An Economic Activity?

The Court of Appeal agrees that clinical commissioning was not an "economic activity", meaning TUPE was not triggered.

For there to be a relevant transfer under TUPE, there must be a "transfer of an undertaking", where an "economic entity" transfers and retains its identity. Most employers won't spend long pondering whether a transfer involves an "economic entity". For example, a sale of a retail store as a going concern is most likely to be considered an "economic entity"; the store's ultimate purpose is to purchase and then sell goods for a profit.

However, a recent Court of Appeal decision has highlighted that the existence of an economic entity is not always straightforward.