Case study Example | Topics and Well Written Essays - 3500 words

Case Study Example The lost service charge provisions are not protected by TUPE because they are deemed to be independent contracts that have been outsourced. They are only protected when the service entails the provision of one whole activity such as catering, and when the completion of the job is credited to the company, such as the entity has no options of other service providers. The basic principle of UK law is the sale or transfer of an entity automatically brings all the contracts the entity had with the employees, and the employees have a choice on whether to continue with the new entity or resign. This makes a lot of legal sense because of the nature of a contract, which is an agreement between two parties regarding a particular subject. A contract is reached upon after considering many factors, bargaining and the future circumstance. Therefore, imposing a contract upon a secondary entity may not be fair. However, Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) law is lenient on employees and protects their rights but this protection is not automatic. The law has to consider the circumstances of each case to see whether the employees qualify for a protection or not. Therefore, this question applies the Transfer of Undertakings (Protection of Employment) law because it touches on the transfer of an entity and also on organized group of employees. In the case of Argyll Coastal Services v Sterling and others UKEATS/0012/11/BI, the question that came up for consideration by the court was the definition of the word organized group of employees. The court contented that an organized group of employees was a particular set of employees who were less than the entire workforce of the entity concerned and who worked together as a team for the accomplishment of a particular purpose. However, on appeal, the court contended that the group was not an