TUPE—service provision changes
TUPE—service provision changes

The following Employment guidance note provides comprehensive and up to date legal information covering:

  • TUPE—service provision changes
  • Service provision changes defined
  • Identifying the client
  • Defining the relevant activity
  • Contracts which are subdivided: more than one potential transferee (fragmentation)
  • Organised groupings of employees
  • Using TUPE 2006 to poach a contractor's employees
  • Single events and tasks of short-term duration
  • Supply of goods
  • Practical issues
  • more

This Practice Note sets out the position for cases where the relevant transfer under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE 2006) takes place on or after 31 January 2014.

For information on the position where the TUPE transfer took place before 31 January 2014, see Practice Note: TUPE—the pre-January 2014 position—Service provision changes.

A change of service provider may amount to a 'service provision change' (also known as an ‘SPC’) within the meaning of TUPE 2006 whether or not it is also a 'business transfer'. For further information on business transfers, see Practice Note: TUPE—business transfers.

Unlike the remainder of TUPE 2006, which implements Directive 2001/23/EC, the Acquired Rights Directive (ARD), the SPC provisions in TUPE 2006 do not derive from European legislation. Rather they were included in TUPE 2006 with a view to codifying European case law and case law under the former UK legislation (TUPE 1981), where certain changes in contractor had been held to be ‘business transfers’. It is therefore important to note that:

  1. European case law is not relevant to interpreting the SPC provisions of TUPE 2006, and

  2. a transfer may be both a business transfer and a service provision change transfer: a putative transfer should be analysed under both tests

The TUPE 2006 service provision change provisions apply to the whole of the UK, including Northern Ireland.