Richards & Ors v Reliance Security Systems Ltd & Anor [1996] UKEAT 1118_94_2002 (20 February 1996)

Richards & Ors v Reliance Security Systems Ltd & Anor [1996] UKEAT 1118_94_2002 (20 February 1996)

The Industrial Tribunal misdirected itself in law by requiring clear evidence of a profit motive for the in-house security services to be considered a commercial venture. On the agreed facts, the security services were part of AEI's commercial undertaking, and the only possible conclusion is that there was a transfer of an undertaking within the meaning of the 1981 Regulations.

Citation
[1996] UKEAT 1118_94_2002
Parties
Appellants: Mr Richards and three others; 1st Respondent: Reliance Security Services Ltd; 2nd Respondent: Associated Electrical Industries Ltd trading as AEI Cables
Jurisdiction
United Kingdom
Judgment Date
20 February 1996
Procedural Posture
Employment Appeal / Appeal From Industrial Tribunal on Preliminary Issue
Outcome
Appeal allowed
Legal Topics
Transfer of Undertakings, Unfair Dismissal, Commercial Undertaking, Interpretation of Regulations
Employment Law Labour Law Transfer of Undertakings Unfair Dismissal Commercial Undertaking Interpretation of Regulations

Case Brief

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Parties

Mr Richards and three others

Appellants

Reliance Security Services Ltd

1st Respondent

Associated Electrical Industries Ltd trading as AEI Cables

2nd Respondent

Procedural Posture

Employment Appeal / Appeal From Industrial Tribunal on Preliminary Issue

Legal Issues

  1. 1 Whether there was a transfer of an undertaking within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 1981
  2. 2 Whether the in-house security services constituted an undertaking in the nature of a commercial venture
  3. 3 Whether the Industrial Tribunal applied the correct legal test

Ratio Decidendi

The Industrial Tribunal misdirected itself in law by requiring clear evidence of a profit motive for the in-house security services to be considered a commercial venture. On the agreed facts, the security services were part of AEI's commercial undertaking, and the only possible conclusion is that there was a transfer of an undertaking within the meaning of the 1981 Regulations.

Court Disposition

Appeal allowed

Orders

  • Declaration that there was a transfer of an undertaking within the meaning of the 1981 Regulations on 17 April 1993
  • Costs of the appeal to be paid by Reliance Security Services Ltd, to be assessed by the Taxing Officer in the absence of agreement