Does TUPE apply where an outsourcing contract comes to an end and a new contractor is engaged?

Yes, TUPE can apply in a "subsequent-generation outsourcing" situation, where an outsourcing contract comes to an end and a new contractor is engaged. TUPE will apply if the situation meets the definition of a "service provision change" set out in the TUPE Regulations. This includes that there must be an "organised grouping of employees" that has the principal purpose of carrying out the particular activities on behalf of the client. Also, the activities to be carried out after the change of provider must be "fundamentally the same" as those carried out by the previous provider.

The effect of TUPE applying in this situation is that even if a client changes to a new provider, the same people may carry out the work.