{"id":4909,"date":"2016-09-28T00:20:08","date_gmt":"2016-09-28T00:20:08","guid":{"rendered":"https:\/\/simplylaw.waydevelopers.com\/england-wales\/wiki\/amaryllis-limited-v-mccleod-tupe-regulations\/"},"modified":"2023-11-04T13:12:06","modified_gmt":"2023-11-04T13:12:06","slug":"amaryllis-limited-v-mccleod-tupe-regulations","status":"publish","type":"articles","link":"https:\/\/simply.law\/england-wales\/articles\/amaryllis-limited-v-mccleod-tupe-regulations\/","title":{"rendered":"Game of Thrones"},"content":{"rendered":"<p><span><span size=\"2\" style=\"font-size: small;\"><span face=\"Arial\" style=\"font-family: Arial;\">In <i>Amaryllis Limited v McCleod, <\/i>the EAT has given some useful guidance on how to approach the often difficult issue of identifying a relevant transfer under the Transfer of Undertakings (Protection of Employment) Regulations 2006.<\/span><\/span><\/span><span><\/span><\/p>\n<p><b><span><span size=\"2\" style=\"font-size: small;\"><span face=\"Arial\" style=\"font-family: Arial;\">Facts\u00a0\u00a0<\/span><\/span><\/span><\/b><\/p>\n<p><span><span size=\"2\" style=\"font-size: small;\"><span face=\"Arial\" style=\"font-family: Arial;\">A company known as Millbrook Furnishings Industries Limited was in the business of renovating chairs for the Ministry of Defence. They had done so for over fifty years.<\/span><\/span><\/span><\/p>\n<p><span><span size=\"2\" style=\"font-size: small;\"><span face=\"Arial\" style=\"font-family: Arial;\">However, between 2003 and 2008, it was actually Amaryllis Limited that secured the contracts for this work (along with other services), albeit that they sub-contracted all the renovation work to Millbrook.\u00a0\u00a0<\/span><\/span><\/span><\/p>\n<p><span><span size=\"2\" style=\"font-size: small;\"><span face=\"Arial\" style=\"font-family: Arial;\">In 2008, Millbrook began undertaking this renovation work again directly for the MoD.<\/span><\/span><\/span><\/p>\n<p><span><span size=\"2\" style=\"font-size: small;\"><span face=\"Arial\" style=\"font-family: Arial;\">In 2014, the MoD retendered the renovation work and this time it was Amaryllis that was awarded the contracts.\u00a0\u00a0<\/span><\/span><\/span><\/p>\n<p><span><span size=\"2\" style=\"font-size: small;\"><span face=\"Arial\" style=\"font-family: Arial;\">At this point, Millbrook argued that a number of their employees transferred under TUPE to Amaryllis as they spent the majority of their time carrying out the work that had now gone to Amaryllis.<\/span><\/span><\/span><\/p>\n<p><span><span size=\"2\" style=\"font-size: small;\"><span face=\"Arial\" style=\"font-family: Arial;\">Despite the MoD giving its view that TUPE applied and Amaryllis submitting its tender on the basis that TUPE applied; it subsequently had a change of heart and decided it did not.<\/span><\/span><\/span><\/p>\n<p><span><span size=\"2\" style=\"font-size: small;\"><span face=\"Arial\" style=\"font-family: Arial;\">At first <g class=\"gr_ gr_53 gr-alert gr_gramm gr_run_anim Punctuation only-ins replaceWithoutSep\" id=\"53\" data-gr-id=\"53\">instance<\/g> the employment tribunal concluded that TUPE (in the form of a service provision change) applied to a number of the Millbrook employees. This decision was appealed by Amaryllis.\u00a0\u00a0<\/span><\/span><\/span><\/p>\n<p><b><span><span size=\"2\" style=\"font-size: small;\"><span face=\"Arial\" style=\"font-family: Arial;\">Decision<\/span><\/span><\/span><\/b><\/p>\n<p><span><span size=\"2\" style=\"font-size: small;\"><span face=\"Arial\" style=\"font-family: Arial;\">The EAT decided that the original employment tribunal had got it wrong and had done so on two grounds<\/span><\/span><\/span><\/p>\n<p>Firstly, it had lost sight of the fact that for there to be a service provision change under TUPE, there must be an \u2018organised grouping of employees\u2019 whose principal purpose was to carry out the relevant activities for the client. This requires more than simply showing that employees spend the majority of their time carrying out certain work. There must be some level of purpose or thought in organising or <g class=\"gr_ gr_57 gr-alert gr_gramm gr_run_anim Grammar multiReplace\" id=\"57\" data-gr-id=\"57\">dedicating<\/g> a group of employees to that work. It is not enough that by mere happenstance the majority of an employee\u2019s time is spent carrying out work for a particular client. The <g class=\"gr_ gr_59 gr-alert gr_gramm gr_run_anim Punctuation replaceWithoutSep\" id=\"59\" data-gr-id=\"59\">tribunal in this case<\/g> had been overly swayed by employees\u2019 timesheets, and that was not the whole story.<\/p>\n<p><span><span size=\"2\" style=\"font-size: small;\"><span face=\"Arial\" style=\"font-family: Arial;\">Secondly, the tribunal had placed too much emphasis on the historical background and lost sight of the fact that it is the arrangements in place immediately before the transfer which are relevant rather than any past practices. Importantly, any arrangements in place between 2003 and 2008 could not be relevant as at that time it <g class=\"gr_ gr_46 gr-alert gr_gramm gr_run_anim Punctuation replaceWithoutSep\" id=\"46\" data-gr-id=\"46\">was in fact<\/g> Amaryllis who were Millbrook\u2019s client and not the MoD under the subcontracting arrangements.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/span><\/span><\/p>\n<p><span><span size=\"2\" style=\"font-size: small;\"><span face=\"Arial\" style=\"font-family: Arial;\">The decision was set aside and sent back to the tribunal to reconsider the case.<\/span><\/span><\/span><\/p>\n<p><strong>Comment\u00a0\u00a0\u00a0\u00a0<\/strong><\/p>\n<p><span><span size=\"2\" style=\"font-size: small;\"><span face=\"Arial\" style=\"font-family: Arial;\">The case is a useful reminder of the correct tests to be applied when determining the presence of a relevant under TUPE. It is tempting simply to conclude that those employees who spend a majority of their time working on the contract will transfer under TUPE to the organisation who takes on the contract. However, as this case clearly demonstrates, that approach misses out the crucial first step of identifying whether or not there <g class=\"gr_ gr_49 gr-alert gr_gramm gr_run_anim Punctuation replaceWithoutSep\" id=\"49\" data-gr-id=\"49\">is in fact<\/g> an organised grouping of employees dedicated to the contact. It is only if there is such a grouping that you then consider which employees are assigned to that grouping and so transfer under TUPE. \u00a0\u00a0<\/span><\/span><\/span><\/p>\n<p>\u00a0<span><span size=\"2\" style=\"font-size: small;\"><span face=\"Arial\" style=\"font-family: Arial;\"><em>Amaryllis Limited v McCleod &amp; Others UKEAT\/0273\/15<\/em><\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The EAT has given some useful guidance on identifying a relevant transfer under the Transfer of Undertakings (Protection of Employment) Regulations.<\/p>\n","protected":false},"author":1,"featured_media":7975,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"_acf_changed":false,"_joinchat":[],"footnotes":""},"categories":[12331,12329],"tags":[11584,11083,11556,11585,10500],"class_list":{"0":"post-4909","1":"articles","2":"type-articles","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-employment-law-for-employees","8":"category-employment-law-for-employers","9":"tag-amaryllis-limited-v-mccleod","10":"tag-eat","11":"tag-service-provision-change","12":"tag-transfer-of-undertakings-protection-of-employment-regulations-2006","13":"tag-tupe"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Game of Thrones - Simply Law England Wales<\/title>\n<meta name=\"description\" content=\"&quot;Explore our comprehensive collection of legal articles covering various topics to help you navigate the complexities of the law. 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