meter_hardyEAT2012
EAT Transfer of Undertakings : Economic Technical or Organisational Reason – ‘Workforce’ in Regulation 7(2) of the Transfer of Undertakings (Protection of Employment) Regulations 2006 does not include corporate franchisees. The Respondent’s business model of using franchisees to carry out meter reading rather than employees was long established and made the Respondent more competitive in winning contracts. The Employment Tribunals erred in holding that the dismissal of employee meter readers transferred to the Respondent under TUPE was not for an economic, technical or organisational reason entailing changes in the workforce. Subject to determination in the Hardy cases of whether the franchise agreements were a sham, no other conclusion could be reached other than that the dismissals in both cases were for an economic, technical or organisational reason entailing changes in the workforce and were by reason of redundancy.
Slade J
[2012] UKEAT 0207 – 11 – 2802
Bailii
Transfer of Undertakings (Protection of Employment) Regulations 2006 7(2)
England and Wales
Employment
Updated: 09 November 2021; Ref: scu.451687