TUPE is a confusing subject, there are many considerations which must be noted during TUPE (and potential TUPE) cases, not a simple switch!
TUPE and changing identity of the employer
The case of Hyde Housing Association v Layton was heard by the Employment Appeal Tribunal (EAT) and concerned whether TUPE applies in the case of an employee moving from employment under a single employer to employment under a collection of employers, including their original employer.
The EAT upheld the Claimant’s appeal, stating that, because the original employer retained liability for the employment, TUPE did not apply.
The details of the case
The Claimant was employed by Martlet, a provider of social housing, which joined with other providers to form the Hyde Group, which was not a separate legal entity. After a restructure, the Claimant was dismissed and re-engaged on a new contract by a group of employers, including Martlet.
The Claimant claimed unfair dismissal, the issue was whether the employment transferred under TUPE regulation 3 (1) (a). The EAT held that since Martlet had retained liability for the employment, the change of employer was not legally relevant for TUPE purposes.
The EAT also held that the Acquired Rights Directive did not require TUPE to apply, as the employer’s legal position with regards to the employee was unchanged.