The European Court of Justice has held that "pre-pack" administration, which is designed to facilitate the sale of a business as a going concern in the event of insolvency, may not prevent employees from having TUPE rights.
A recent legal ruling shows that sound judgment is needed during TUPE service provision changes to decide whether or not the activities carried out afterwards are "fundamentally the same" as before. Dr John McMullen advises on the ruling.
Hyde Housing Association Ltd and others v Layton [2016] IRLR 107 EAT, the EAT held that there was no TUPE transfer when an employee became employed by a group of entities that included his original employer, because the legal relationship between the employee and the original employer had not changed.
Laying off employees before a service provision change does not necessarily prevent them from transferring to the new employer under TUPE. Lindsay Macdonald reports on a recent case at the Employment Appeal Tribunal (EAT).