Life cycle of a services contract: what goes around comes around

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When negotiating a contract for the provision of services, the legal implications of TUPE should inform the commercial position of the parties. The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) is a complex piece of legislation, but it is highly relevant in the context of services contracts. It is important for commercial managers to understand the operation of TUPE when entering into contractual obligations on behalf of their organisations to provide or receive services. Failure to plan for the beginning, middle and end of a service provision contract could leave the parties exposed to the risks of changing circumstances.

The legal world tends to follow trends. In the 1990s companies outsourced all manner of functions such as cleaning, catering, security, payroll etc. for the first time. The new Millennium saw the continuation of that fashion through second and subsequent generation outsourcing as contracts were re-tendered and lately we are seeing a return to in-sourcing with services being returned “home” to the end-user client…

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