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

This report relates to 1 case(s)

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    Honeycombe 78 Ltd v (1) Cummins and others (2) Secretary of State for Trade and Industry EAT/100/99 (0 other reports)

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 10.12.99 EAT 100/99. 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.