Pressure Coolers Ltd v Molloy and Others: EAT 9 Jun 2011

EAT TRANSFER OF UNDERTAKINGS – Insolvency
The issue in these appeals is who, in law, should pay the Claimant employee’s basic award and notice pay following his unfair and wrongful dismissal by the transferee after a ‘pre-pack’ TUPE transfer. Consideration was given to the meaning and effect of regulation 8(3) of TUPE in circumstances where, following the transfer of a business in administration as a going concern, the employee is then dismissed by the transferee. The ET’s decision, on review, that in these circumstances the transferee, and not the Secretary of State, was liable for these sums under the relevant statutory scheme in Part XII ERA was upheld.
Criticisms were also made of the procedure adopted at review in this case. The ET’s decision simply to substitute the original judgments on liability and remedy with new judgments, without any reference to the review, was found to be unhelpful and the practice should not therefore be followed.

Judges:

Cox J

Citations:

[2011] UKEAT 0272 – 10 – 0906

Links:

Bailii

Jurisdiction:

England and Wales

Employment, Insolvency

Updated: 15 September 2022; Ref: scu.441171