The Trade Union and Labour Relations (Consolidation) Act 1992, which protects workers from...
Transfer to Multiple Employers - Does TUPE Apply?
Where an employee is employed by A and then moves to an employment contract in which he is employed by A and others, is there a transfer of undertakings?
Based on the facts of this case, no said the EAT in Hyde Housing Association v Layton, upholding the employers' appeal, there was no transfer of Mr Layton’s employment under TUPE.
Mr Layton had been employed by, Martlet, a registered provider of social housing which joined with other providers to form the Hyde Group, although this was not a separate legal entity, just a collective for all the organisations involved. His payslip showed that he was paid by Hyde Housing Association. As part of the restructure the Claimant was dismissed by Martlet and re-engaged on a new contract by a group of employers including Martlet, operating under the Hyde Group. This is apparently common in the housing association sector. However, Martlet still retained responsibility to Mr Layton as the lead employer. Mr Layton claimed automatic unfair dismissal.
The EAT said that whilst it was possible for TUPE to apply when an employee transferred to multiple transferees, as Martlet had retained liability for the Claimant's employment even though its liability was now joint and several with other employers, the change of employer was not legally relevant for TUPE purposes.
Mr Layton has been given permission to appeal to the Court of Appeal.