The Appeal Tribunal has recently decided that the directors of a charity did not transfer under TUPE when the service was taken in-house by the local authority, even though the local authority had been the charity’s only client.

Before the services were taken in-house, the housing charity solely provided outreach services for the City of Edinburgh Council. The claimants were both directors whose roles were focused on running the organisation rather than providing the physical services. The Appeal Tribunal held that these strategic duties were different from the actual provision of the services and that the Directors were therefore not assigned to the undertaking that was transferring.

This left the Directors adrift and unemployed, and has clarified the difficulties staff who are not providing front line products or services will face in a TUPE situation. The Appeal Tribunal pointed out that cooks and handymen looking after the staff and office of a business, and not in the front line would face similar problems. Previously senior managers who were not directors have been excluded. This list looks set to get longer.

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Updates: For employers: Buying or selling a business | TUPE |
Tagged with: TUPE |

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