Duncan and another v Ottimo Property Services Ltd

Employment – Continuity. The employment tribunal (the tribunal) had found that the first respondent employee's employment had not transferred from the appellant company to the second respondent. The issue was whether the tribunal had erred in interpreting the word 'client' in reg 3(1)(b) of the Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 (TUPE) as requiring one single legal entity. The tribunal had found that the existence of a number of legal entitles as clients meant that there could be no service provision change (SPC) transfer. The Employment Appeal Tribunal, allowing the appellant's appeal, held that the tribunal had erred in adopting such a strict view. The existence of more than one legal entity, and possibly even more than one contract, would not necessarily be fatal for the purposes of reg 3(1)(b) of TUPE. The case was remitted for reconsideration.

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