The Employment Appeal Tribunal (EAT) has ruled that the Transfer of Undertakings (Protection of Employment) (TUPE) Regulations do not apply when the provider of business services changes at the same time as their recipient.
The ruling surrounds the case of a guard whose contract was terminated when another firm took over the provision of security services at a building where the owner changed at the same time.
He wanted to use TUPE Regulations to claim unfair dismissal against the new security provider. Furthermore, the original security service provider argued that the guard had had a duty of care to protect the property before the new owners moved in, making the new owners their client.
However, the judge ruled that the seller was the client, not the new owners, and so TUPE did not apply.
Consequently, the guard will need to claim unfair dismissal against the original security provider, not the new one.