Economic entity

Case 6: The facts

Ms Davies and Mrs Baig worked for a travel company, dealing exclusively with one customer. They were based at the customer's premises. The customer then started arranging its travel through a different company, and Davies and Baig returned to work elsewhere for their employer. They argued that the provision of travel services to this particular customer was a distinct economic entity, and that their employment should transfer to the new provider under TUPE.

The ruling

The EAT found that Davies and Baig had provided part of a service to the customer but that other services to that customer had been provided elsewhere by their employer. There was no transfer of assets.

The EAT held that the service they had provided had not been an autonomous one and did not constitute an economic entity - so there was no undertaking to transfer.

Davies & Baig v Eton Air UKEAT/0016/04