Activities consisting wholly or mainly of the supply of goods

TUPE will not apply, for example, to a contract simply to supply food to a company (supply of goods), but it will apply if the contractor is also responsible for running the company’s canteen (supply of services). These limits were explored in Pannu v Geo W King Limited (in liquidation) [2011] UKEAT/0021/11/2112, a case backed by general unions Unite and the GMB. Assembly line workers supplying components to a vehicle manufacturer argued that their employment transferred when that manufacturer changed supplier, on the basis that they were supplying not goods but services. Those services included, for example, checking that the goods were safe to use, and sourcing parts. The EAT disagreed, ruling that these services were only part of the employees’ overall responsibility which was for the supply of goods. As a result, their employment did not transfer.