Cases1400078/2024

Claimant v South Gloucestershire Council

7 August 2024Before Employment Judge N J Roperremote video

Outcome

Claimant fails

Individual claims

Unlawful Deduction from Wageswithdrawn

The parties agreed terms of settlement during the hearing. The tribunal adjourned these claims to allow implementation of the settlement, and ordered that if no application to re-list was made by 30 August 2024, the claims would stand dismissed on withdrawal.

Holiday Paywithdrawn

The parties agreed terms of settlement during the hearing. The tribunal adjourned these claims to allow implementation of the settlement, and ordered that if no application to re-list was made by 30 August 2024, the claims would stand dismissed on withdrawal.

Constructive Dismissalfailed

The tribunal found the claimant resigned on 31 July 2023 by objecting to the TUPE transfer. The Council did not impose detrimental changes to terms and conditions. The Council repeatedly reassured staff that existing terms would be protected unless they agreed to the optional measures proposed by the new employer. There was no fundamental breach of the implied term of trust and confidence, as the Council properly engaged in consultation and did not act in a manner calculated to destroy trust and confidence.

Automatic Unfair Dismissalfailed

The tribunal held that under Regulation 4(7) and 4(8) of TUPE 2006, where the claimant objected to being employed by the transferee, the transfer operated to terminate her contract but she was not to be treated as dismissed by the transferor. Therefore no dismissal occurred for the purposes of Regulation 7 (automatic unfair dismissal related to TUPE transfer). The claim was dismissed.

Breach of Contractfailed

The claimant's claim for notice pay in breach of contract was dismissed because the tribunal found the Council did not dismiss the claimant. The claimant resigned without notice by objecting to the TUPE transfer. As there was no dismissal, there was no obligation to pay notice pay.

Facts

The claimant was a cleaner aged 73 with over 21 years' service at a school. Her employment with the Council was due to transfer to a new cleaning contractor (DCS) under TUPE on 1 August 2023. The new employer proposed some changes to terms and conditions (the 'Measures Letter'), including reducing working weeks from 44 to 43 and changing shift times. The Council assured all staff that existing terms would be protected unless they agreed to the new measures. After three consultation meetings, the claimant (and one other Unite member) told the Council they did not wish to transfer and claimed constructive dismissal. The claimant did not report for work with DCS after 31 July 2023.

Decision

The tribunal found the claimant resigned by objecting to the TUPE transfer, and there was no constructive dismissal. The proposed changes by the new employer were not imposed—they were optional and subject to the claimant's agreement. The Council properly consulted and repeatedly reassured staff that their terms were protected. Under TUPE Regulations 4(7) and 4(8), where an employee objects to a transfer, the contract terminates but they are not treated as dismissed. All claims for unfair dismissal and breach of contract (notice pay) were dismissed.

Practical note

An employee who objects to a TUPE transfer under Regulation 4(7) terminates their employment but is not treated as dismissed, even where the new employer proposes changes to terms and conditions, provided those changes are not imposed and the transferor properly consults and reassures staff of their rights.

Legal authorities cited

Western Excavating v Sharp [1978] ICR 221Courtaulds Northern Spinning Ltd v Sibson [1987] ICR 329Omilaju v Waltham Forest London Borough Council [2005] IRLR 35 CAWoods v WM Car Services (Peterborough) Ltd [1981] ICR 666 CABuckland v Bournemouth University Higher Education Corporation [2010] IRLR 445 CATullett Prebon PLC v BGC Brokers LP [2011] EWCA Civ 131University of Oxford v Humphreys [2000] 1 All ER 996 CAKaur v Leeds Teaching Hospital NHS Trust [2018] EWCAMalik v Bank of Credit and Commerce International [1998] AC 20

Statutes

TUPE 2006 Reg 4(2)TUPE 2006 Reg 4(7)TUPE 2006 Reg 4(8)TUPE 2006 Reg 4(9)Trade Union and Labour Relations (Consolidation) Act 1992 s.207ATUPE 2006 Reg 7(1)ERA 1996 s.95(1)(c)ERA 1996 s.98(4)TUPE 2006 Reg 3(1)TUPE 2006 Reg 4(1)

Case details

Case number
1400078/2024
Decision date
7 August 2024
Hearing type
full merits
Hearing days
2
Classification
contested

Respondent

Sector
public sector
Represented
Yes
Rep type
solicitor

Employment details

Role
Cleaner
Service
22 years

Claimant representation

Represented
Yes
Rep type
barrister