TUPE DID NOT APPLY TO SHORT-TERM CONTRACT
In the case of Liddell's Coaches v Cook and ors, the Employment Appeal Tribunal (EAT) has ruled that Regulation 3 of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), which indicates that TUPE provisions should not be applied to a service provision change connected with a 'single specific event or task of short-term duration', meant that TUPE did not apply to the transfer of a one-year local authority contract to transport schoolchildren from one coach operator to another.
Mr Cook worked as a coach driver for Lidell’s coaches, which won five contracts to transport schoolchildren to other schools in the area, while their school was being rebuilt. These contracts expired at the end of the 2010/11 school year, but Lidell’s was invited to bid for further one-year contracts, covering the period up to the scheduled opening of the re-built school. Lidell’s won only one of these extended contracts, and the others were awarded to another company, AC Ltd.
Lidell’s no longer required Mr Cook’s services after July 2011, but asserted that his employment transferred to AC Ltd, under TUPE. However, AC Ltd denied liability for Mr Cook’s employment, which led to him bringing an unfair dismissal claim to an employment tribunal.
The tribunal found AC Ltd had no liability, on that grounds that the 'service provision change' was of the nature excluded by the wording of Regulation 3 of the TUPE Regulations 2006. The tribunal focused on Regulation 3(3)(a), which sets down conditions under which a change of contractor can and cannot amount to an 'service provision change'. Among other things, Reg 3(3)(a)(ii) provides that no 'service provision change' occurs if the client's intention is that the activities being contracted for will be carried out 'in connection with a single specific event or task of short-term duration'.
The tribunal referred to guidance issued in 2006 by the then Department for Trade and Industry (DTI) to the effect that the Government's intention was that an event or task would have to be both 'single specific' and of 'short-term duration' to be excluded. The tribunal found that the 'single specific event' was the rebuilding of the school and that, in the particular circumstances, given that that transport contracts were typically awarded for three to five years rather than just one, so that it was correct to see the 2011/12 contract as one of short-term duration. This meant that liability for Mr Cook’s dismissal rested with Lidell’s.
When Lidell’s appealed to the EAT, the EAT agreed that the tribunal had reached the right decision, although it did not fully support its reasoning. On the question of Reg 3(3), the EAT, noted that there was as yet no authoritative determination of whether the exclusion of 'single specific event or task of short-term duration' excludes (i) all single specific events and all tasks of short-term duration, or (ii) only those events or tasks that are both 'single specific' and 'of short term duration'. Notwithstanding the DTI guidance, it preferred the former interpretation - i.e. 'single specific events' stand apart from 'tasks of short-term duration' as distinct categories of excluded transfers. This means that short-term duration tasks can be excluded from TUPE, independently of whether they relate to a single specific event.
This reasoning opened the way for the EAT to agree with the tribunal that the 2011/12 transport contract excluded from TUPE provisions simply because it related to a task of short-term duration (regardless of whether it could also be described as a single specific event). The tribunal was entitled to find that, in the context of transport contracts usually being for several years, a one-year contract was of short-term duration. Lidell’s appeal was therefore dismissed.
This EAT ruling appears to slightly narrow the circumstances in which TUPE rules need to be applied and followed, particularly where short-term extensions to contracts which are normally of longer durations are being let.
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http://www.ppma.org.uk/ppma-news/tupe-d ... XbGnQ.dpufAll of Leicestershire and Staffordshire contracts are now the same "short term" i.e. my current one is 2013/14... and Id suspect Grandads is the same