Temporary lay-off does not prevent a TUPE transfer

In Inex Home Improvements Limited v Hodgkins and Others the Employment Appeal Tribunal has held that the lay-off of workers or the temporary cessation of an activity does not prevent there being a Service Provision Change (“SPC”) TUPE transfer in relation to that activity.

TUPE applies where there is a “relevant transfer – either a traditional “business transfer” or an SPC. One of the conditions for an SPC to occur is that there must be an organised grouping of employees whose principal purpose is to carry out the relevant activities. It was this condition that was under scrutiny in the Inex case.

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