Transfer of undertakings: Dismissal to comply with requirement imposed on new contractor was "ETO" reason

A redundancy demanded by a hospital as a condition of awarding a contract for the provision of prosthetic services to a new contractor amounted to an "economic" reason for dismissal by the latter, holds the Court of Appeal in Whitehouse v Chas A Blatchford & Sons Ltd ¹. The reason for dismissal related to the future conduct of the business, and would have applied equally to the previous contractor had its tender been successful.