Offshoring and TUPE: the courts speak at last

In the case of Holis Metal Industries v GMB and Newell Ltd, the Employment Appeals Tribunal (EAT) confirmed that TUPE does, in principle, have the potential to apply to the transfer of a service or business entity outside of the UK and the EU.

This is the first decided case on this direct point in the UK and possibly in the EU generally. It is therefore potentially very important, even though it just confirms what many of us thought we might know already!

While the facts of the case are a very long way from the world of offshoring back office services, the principle is reasonably clear. Notwithstanding that enforcement of any tribunal award might prove difficult, TUPE does potentially apply to transfers outside the UK.

Anyone who is considering an offshoring programme or who is trying to risk manage the implementation and/or aftermath of one, must bear this in mind.

Wragge & Co's employment specialists provide a detailed analysis of the case and its implications, as well as suggestions for action.