Q&As

What steps should a first generation outsourcing contractor take when the services it provides are going to be taken over but the identity of the incoming contractor is not yet known?

read titleRead full title
Published on LexisPSL on 22/02/2017

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

  • What steps should a first generation outsourcing contractor take when the services it provides are going to be taken over but the identity of the incoming contractor is not yet known?

What steps should a first generation outsourcing contractor take when the services it provides are going to be taken over but the identity of the incoming contractor is not yet known?

The facts as you describe them are:

  1. Company A has given notice to terminate its contract with a public body to provide services

  2. the public body has confirmed that it intends to appoint a new contractor to provide services, ie that there will be a relevant transfer under regulation 3(1)(b)(ii) of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE 2006), SI 2006/246 (TUPE 2006, SI 2006/246, reg 3(1)(b)(ii)) (change of contractor)

  3. the identity of the subsequent contractor is not yet known, as the public body has not yet decided to whom it will award the contract

  4. termination of the contract is imminent, and

  5. if there is no TUPE transfer, the positions of relevant employees will become redundant

The following scenarios are possible:

  1. Company A begins redundancy consultation and there is a TUPE transfer

  2. Company A begins redundancy consultation and there is no TUPE transfer

  3. Company A does not begin redundancy consultation and there is a TUPE transfer

  4. Company A does not begin redundancy consultation and there is no TUPE transfer

The employer may therefore wish to consider the following:

  1. where a redundancy situation arises, the need to consult:

    1. under Trade Union and Labour Relations

Popular documents