Employment Appeal Tribunal
Adopting the purposive approach required by the TUPE Regulations, the EAT held that a transferee company was deemed to be an employer participating in the profit related pay scheme set up by the transferor, and was therefore liable to make payments to the transferred employees under their contracts of employment.
An appeal by an employer against a decision of a Chairman of the London (South) Employment Tribunal relating to the application of the Transfer of Undertakings (Protection of Employment) Regulations 1981 ("TUPE"). The respondents to the appeal were employees of W A Atkins (Services) Ltd ("Atkins Services"), part of the Atkins Group, and were engaged to carry out a works contract for Surrey County Council ("SCC"). Their remuneration package included a profit sharing bonus scheme ("the PRP Scheme"). The works contract between SCC and Atkins Services came to an end on 31 March 1997 following a tendering exercise which saw it transferred to the appellant company on 1 April 1997. It was common ground that there was a relevant transfer under TUPE and that the respondents worked between 1 April 1996 and 31 March 1997 which was the profit year for the purposes of the PRP scheme. The question on appeal was whether the respondents were entitled to payments from the appellant under the PRP scheme.
 IRLR 80
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