Outsourcing contracts

Will outsourcing certain activities benefit your business?

What are the TUPE implications of outsourcing?

Outsourcing has become a familiar concept in recent years to describe the transfer of a business or service to a third party. The third party takes on the operational responsibility for the provision of the business function or service.

Typical examples include appointing an external company to answer your telephones, provide cleaning or catering services, or deliver a complete IT service including hardware, software and maintenance.

This can involve the transfer to the third party company of the employees engaged in the activity that is being outsourced under the provisions of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE). If this is the case then consultations will need to take place.

If you are planning on outsourcing, you will need legal advice regarding:

• TUPE implications;
• specifying the outsourced services;
• determining the service levels required;
• pricing structure;
• the term – your requirements may change and the agreement should have the ability to accommodate future changes and allow you to terminate through no fault of the supplier;
• termination payment structure; and
• arrangements for implementation and any transitional arrangements during which the services are transferred to the supplier.

Above all, contact the commercial law or employment law team at Myers & Co prior to taking any steps to outsource or insource any service or process.

Based in Stoke-on-Trent, Staffordshire, our commercial lawyers have a reputation for providing accurate advice, and dealing with complex problems in an efficient manner.   To find out more, contact us on 01782 577000.