Temporary suspension of operations
[ch 2: pages 22-23]There can be an SPC even if operations are temporarily suspended before a contract changes hands (Housing Maintenance Solutions Limited v McAteer [2014] UKEAT/0440/13/LA). Everything depends on the facts, especially the reason for the suspension. Here are some examples:
• in Inex Home Improvements Limited v Hodgkins & Others [2015] UKEAT/0329/14/JOJ, a temporary lay-off did not prevent employees who were delivering the service contract before the lay-off being transferred to the new contractor when work started again;
• in Mustafa v Trek Highways Services Limited [2016] UKEAT/0063/15/BA, a case supported by general union Unite, work stopped for three weeks due to a commercial dispute between contractor and sub-contractor, after which the work was taken over by a new contractor. Employees working on the contract before the shutdown should have transferred to the new service provider when work resumed.