Q&As

Does TUPE 2006 extend to the transfer of offshore installations outside the UK’s territorial waters but within the UK area of the continental shelf of the North Sea, and what is the status of Addison v Denholm Ship Management (EAT)?

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Published on LexisPSL on 05/10/2018

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • Does TUPE 2006 extend to the transfer of offshore installations outside the UK’s territorial waters but within the UK area of the continental shelf of the North Sea, and what is the status of Addison v Denholm Ship Management (EAT)?

TUPE 2006 applies to a business transfer or a service provision change involving:.

  1. the transfer of an undertaking or business (or part of an undertaking or business) situated immediately before the transfer in the UK (a business transfer)

  2. a change in the provider of a service (outsourcing, insourcing or a change in contractor), where certain conditions are satisfied (a service provision change)

In Addison v Denholm, the Employment Appeal Tribunal held that did not extend to the sale of ‘flotels’ (or floating accommodation) in the UK area of the continental shelf of the North Sea ‘which, by definition, is beyond the UK's territorial waters’. However, Addison was decided on the then applicable Directive 77/187/EEC, which was expressed not to apply to sea-going vessels, and TUPE Regulations 1981, regulation 2(2) which excluded the transfer of a ship ‘without more’.

Article 1(3) of Directive 2001/23/EC, the Acquired Rights Directive is amended by Article 5 of Directive 2015/1794, the Seafarers Directive, to read:

‘This Directive shall apply to a transfer of a seagoing vessel that is part of a transfer of an undertaking, business or part of an undertaking or busines

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