What is a ‘service provision change’?

As set out before, TUPE also applies to outsourcing and insourcing of services as well as changes from one contractor/sub-contractor providing services to another (second-generation outsourcing) ­ these are collectively known as ‘service provision changes’.

A transfer will only take place where there is an ‘organised grouping of employees’ whose ‘principal purpose’ is to carry out work for a particular client. For example, if there was a group of software engineers who work for Company A predominantly on a contract for Company X and Company B subsequently wins the contract with Company X then, on the face of it, that grouping of software engineers would move from Company A to Company B i.e. their employment would automatically transfer by virtue of TUPE.

The supply of goods and “one-off buying-in of services” are excluded from the reach of TUPE.