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With regard to TUPE on outsourcing, is it possible to provide that TUPE won't apply where an outsourcing contract is terminated early for breach by the service provider?

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Published on LexisPSL on 20/08/2020

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  • With regard to TUPE on outsourcing, is it possible to provide that TUPE won't apply where an outsourcing contract is terminated early for breach by the service provider?

With regard to TUPE on outsourcing, is it possible to provide that TUPE won't apply where an outsourcing contract is terminated early for breach by the service provider?

It is not possible to contract out of the effects of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE 2006), SI 2006/246. See Practice Note: TUPE—contracting out and settling claims.

However, parties to a commercial agreement affected by TUPE 2006, SI 2006/246 will usually manage those effects by way of appropriate indemnities that apportion specific liabilities between the parties. An indemnity is an agreement by one person to bear the cost of certain claims brought against another person. For example, in the scenario to which you refer, the defaulting service provider may agree to bear the client’s costs relating to claims by employees who may subsequently be dismissed

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