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Transfer of undertakings: Contracting-out and contracting-in covered by TUPE

This report relates to 2 case(s)

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    Council of the Isles of Scilly v (1) Brintel Helicopters Ltd and (2) Ellis and others [1995] IRLR 6 EAT (0 other reports)

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    Kelman v Care Contract Services Ltd [1995] ICR 260 EAT (0 other reports)

The question of whether and when the contracting-out of services is covered by the EC "Business Transfers" Directive, and therefore by the Transfer of Undertakings Regulations, has proved one of the most contentious issues in employment law. In the two cases reported below, the EAT provides useful guidance on the circumstances in which the initial contracting-out process - as well as any subsequent change in the contractor or service provider - is likely to lead to the transfer of an undertaking or business within the meaning of those provisions. We summarise that guidance below.