EAT Was there a transfer of an undertaking when company A acquired the shares in company B and then ran it so as to facilitate the interrelationship of the two companies to their mutual benefit? The Employment Tribunal held that there was; there was more than a simple share sale. The new controllers had effectively brought the two operations under one umbrella. Accordingly, the employer had changed notwithstanding that there had been no formal transfer of the business. The EAT upheld the appeal on the basis that mere control by the holding company does not amount to a transfer of the business; and that the approach of the Tribunal impermissibly involved lifting the corporate veil in circumstances where the two businesses remained separate as a matter of law, and the relationship of holding and subsidiary company was not a mere sham.
Judges:
Elias J P
Citations:
[2006] UKEAT 0253 – 06 – 0108
Links:
Employment
Updated: 07 July 2022; Ref: scu.244571