Source: Industrial Relations Law Bulletin Issue: 635 Date: 15-02-2000 Publisher: IRS

Transfer of undertakings: Dismissals were for economic reason irrespective of potential transfer

TOPICS:
terms, conditions and employee rights general rights
termination of employment dismissal

CASES: below is a list of cases discussed in this article. Click the case title for more XpertHR resources on the case and related cases.

Honeycombe 78 Ltd v (1) Cummins and others (2) Secretary of State for Trade and Industry EAT/100/99 (1 report)


An employment tribunal fell into error by patently failing to consider whether or not the reason or principal reason for the dismissal of employees by the administrator of an insolvent company was an economic reason unrelated to the transfer of the company's undertaking, concludes the EAT in Honeycombe 78 Ltd v (1) Cummins and others (2) Secretary of State for Trade and Industry (1). On the primary facts as found, the tribunal was bound to conclude that the administrator had decided to dismiss the staff in spite of that potential sale, not with a view to effecting it, for the economic reason that there were insufficient funds to pay the workforce.

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