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When do activities consist wholly or mainly of the supply of goods?
[ch 2: pages 20-21]As always, this is a question of fact for the tribunal to decide. The issue was explored in the following case:
Assembly line employees worked for Company A, a business supplying components to Company B, a vehicle manufacturer. Company A did not just assemble components. It also sourced and acquired them ready for assembly.
Company A became insolvent and Company B found another provider. The assembly line workers argued that they were carrying out services and not supplying goods, meaning that their employment transferred to the new provider.
The EAT disagreed. The employees were engaged in the supply of goods to Company B. Although as a part of that role, they also provided the services of checking the goods were safe to use and sourcing parts, in reality this was only part of their overall responsibility, which was for the supply of goods.
Pannu v Geo W King Limited (in liquidation) [2011] UKEAT 0021/11/2112