TUPE Does Apply To Transfers Of Companies In Administration
Key2Law (Surrey) LLP -v- De' Antiquis [2011] EWCA Civ 1567
The Court of Appeal issued its long-awaited Judgment in the case of Key2Law (Surrey) LLP -v- De' Antiquis, confirming that businesses which are in administration are not exempted from TUPE.
Under Regulation 8(7) of TUPE, in circumstances where there is a "relevant transfer" involving a transferor which is "subject to bankruptcy proceedings or any analogous insolvency proceedings which have been instituted with a view to the liquidation of the assets of the transferor", then Regulations 4 and 7 of TUPE will not apply. Regulations 4 and 7 of TUPE are the provisions which operate to automatically transfer employees from the transferor to the transferee and which prohibit dismissals connected with the transfer. Therefore, where Regulation 8(7)...
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