Separate entity

Case 1: The facts

A number of temporary crew members on the Isle of Wight ferries brought claims for unlawful deduction of wages. When their contracts with Wightlink ended, they were given contracts by Guernsey Ship Management to work on the same line. As a preliminary issue to determine who the claim should be made against, a tribunal had to decide whether their employment had transferred under TUPE.

The Employment Appeal Tribunal (EAT) held that there had been no relevant transfer, as the group of workers was not an identifiable economic entity capable of being transferred (see Workplace Report, February 2007).

The claimants appealed again, arguing that, as short-term staff, they were intended to provide a flexible workforce in addition to the company’s permanent employees. As such, they said, they constituted a defined “economic entity”.

The ruling

The Court of Appeal rejected the claimants’ argument and upheld the rulings of the tribunal and the EAT.

It said the tribunal had properly considered the factors as set out in Cheesman v R Brewer Contracts Ltd [2001] IRLR 144, which were relevant in deciding whether or not there was an economic entity, and had been entitled to find that there was not.

Wain & others v Guernsey Ship Management Ltd [2007] EWCA Civ 294