EAT TRANSFER OF UNDERTAKINGS – Insolvency – RIGHTS ON INSOLVENCY
Employees were transferred from a company in administration to a former 90% shareholder who purchased its business. Three days later the business folded. All employees claimed arrears of pay, and holiday pay, three claimed for unpaid notice pay, and one for a redundancy payment. An Employment Judge found there had been a TUPE transfer, that Regulation 8(7) did not apply but that Regulations 8(1)-(6) did, and that applying Regulation 8(3) the transferor was liable for the payments for which the redundancy provisions and Part XII of the Employment Rights Act 1996 makes provision, which accordingly fell to the Secretary of State to discharge.
On the Secretary of State’s appeal,
Held: Regulation 8(3) did not apply to debts which had not accrued as such by the time of transfer. Pressure Cooler v Molloy [2012] ICR 51 was authority directly in point, supported by dicta of Elias J and Underhill P in earlier cases, binding on the Employment Judge, and was followed.
Langstaff P J
[2015] UKEAT 0505 – 13 – 0302
Bailii
Employment Rights Act 1996
England and Wales
Employment, Insolvency
Updated: 01 November 2021; Ref: scu.544859
