Outsourcing/insourcing tupe

[mystery1]

Long story short.

Employees outsourced to umbrella companies and run via agency. 14 months later the original employer (all be it a different company within the group of the original employer)) decides to hire workers but not as an insource transfer, but an advert for anyone to apply. Some will be different, lesser terms with no security (zero hours). Don't apply for the new jobs and the agency have no work after this month and workers essentially fired (made redundant)

Essentially the job and workload haven't changed.

Legal ? Any case law ?

M1

[mystery1]

Re: Outsourcing/insourcing tupe

Upon research :-

http://www.legislation.gov.uk/uksi/2...ulation/3/made

3. A relevant transfer


(1) These Regulations apply to -


(a) a transfer of an undertaking, business or part of an undertaking or business situated immediately before the transfer in the United Kingdom to another person where there is a transfer of an economic entity which retains its identity;




(b) a service provision change, that is a situation in which -



(iii) activities cease to be carried out by a contractor or a subsequent contractor on a client’s behalf (whether or not those activities had previously been carried out by the client on his own behalf) and are carried out instead by the client on his own behalf,


and in which the conditions set out in paragraph (3) are satisfied.



(3) The conditions referred to in paragraph (1)(b) are that -


(a) immediately before the service provision change -


(i) there is an organised grouping of employees situated in Great Britain which has as its principal purpose the carrying out of the activities concerned on behalf of the client;


(ii) the client intends that the activities will, following the service provision change, be carried out by the transferee other than in connection with a single specific event or task of short-term duration; and


(b) the activities concerned do not consist wholly or mainly of the supply of goods for the client’s use.





http://www.employmentcasesupdate.co....aspx?i=ed24996


http://www.bailii.org/cgi-bin/format...ry=(GORMANLEY)

M1

[mystery1]

Re: Outsourcing/insourcing tupe

Well today, my day off anyway, is the last day of the outsourcing arrangement according to rumour. No communications or resignations but it appears the last shifts of those who didn't apply for a 0 hour contract with the in house employer are today. The fun is about to start.

M1

[R0b]

Re: Outsourcing/insourcing tupe

@mystery1

I did intend on giving some additional info on this but just haven't had long enough time to sit down in one place! I think the relevant transfer would be a service provision change but you mention that employees are outsourced to (various?) umbrella companies and it is the head company making the decision. It has already been acknowledged that a service provision change must be with the same client for TUPE to apply - not sure if this point is applicable in your case but worth reading anyway.


http://www2.cipd.co.uk/pm/peoplemana...n-change.aspx#

http://www.personneltoday.com/hr/a-t...than-one-firm/

I would also suggest a good read of the government guidance on TUPE, quite extensive but I think it does break down this confusing area of law into understandable chunks and gives examples.

https://www.gov.uk/government/upload...ndertaking.pdf


I'll try give a better view when I have some more time but hopefully that will give you a starting point