The Service Provision Change Regulations [Video]Posted in : Back to Basics on 25 May 2016 Issues covered:
In Northern Ireland we have our own indigenous regulations dealing with SERPS provision change. These and other provisions, which are already contained within the TUPE regulations, which are the content of a separate video.
Within TUPE, and within the SPC regulations, they're the same requirements in respect of the information and consultation with employees, the automatic transfer principle, and the transfer contractual entitlements for employees who transfer.
However, instead of dealing with a business transfer, the SPC regulations apply in three scenarios. One, where activities cease to be carried out by a client and instead the activities are carried out by a third-party, or a contractor. This is known as outsourcing.
Secondly, where the activities cease to be carried out by the contractor and the client does the activities itself or brings it in-house. And third, the activities cease to be carried out by one contractor and instead are carried out by a new contractor. This is known as a change of contractor.
The organized grouping of employees, who have a principal purpose of carrying out activities or the services for and on behalf of the client at the date of transfer, are in scope for protection under the SPC regulations. At the date of transfer, their employment will automatically transfer to the new provider or the new contractor pursuant to the regulations.
As with the TUPE regulations, a failure to transfer an employee within the organised grouping of employees, will give rise to a claim for automatic unfair dismissal. It will also give rise to a liability, which can be brought to industrial tribunal.
In the same way a failure to inform or consult with the employee, before the transfer, will lead to a claim for 13 weeks pay per employee.This article is correct at 25/05/2016
The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.