17 February 2012

No TUPE transfer: dayshift employees were not dedicated to the client

Eddie Stobart Ltd (ES) stored and delivered meat products for its clients, Forza and Vion. Forza and Vion were meat suppliers and supplied meat products to retailers (e.g. ASDA). The retailers would place their orders for meat products at different times for next-day delivery. As a result of this, the nightshift employees at the ES depot (in Manton Wood) mainly worked on tasks required by the Forza contract; and the dayshift employees mainly worked on tasks required by the Vion contract.

FJG Logistics Ltd (FJG) won the Vion contract. The dayshift employees claimed that they had been TUPE transferred to FJG – since they were an organised group of employees whose principal purpose was to work on the Vion contract.

The EAT disagreed. The dayshift employees were not organised by reference to the requirements of the Vion contract (e.g. they were not organised as the Vion team). The dayshift employees mainly worked on the Vion contract - because Vion's work had to be done during the dayshift - in order to deliver the meat products ordered by Vion's customers.

Eddie Stobart Ltd v FJG Logistics Ltd [EAT/0223/11]

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