In February 2012, the Employment Appeal Tribunal passed judgment on the case of Hunter v McCarrick. The EAT decided that a simultaneous change of client and contractor meant that there was no "service provision change" under the Transfer of Undertakings (Protection of Employment) Regulations 2006. The Court of Appeal has now confirmed the EAT's decision. There can't be an SPC where the identity of the client changes when there is a change of contractor.
This case is likely to have a wide ranging effect in the commercial property context in particular. Where ownership or management of a commercial property changes at the same time as facilities services are changed, facilities staff will not transfer to the incoming facilities provider. The outgoing provider will have to bear any redundancy costs of its staff unless it has negotiated protection on termination into its contract.
Wragge & Co's employment team analyse the decision in more detail and highlight some points for further consideration.