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Transfer of undertakings: "Hiving-down" provision is subject to Litster principle

This report relates to 1 case(s)

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    Re Maxwell Fleet and Facilities Management Ltd (in administration) (No.2) [2000] 2 All ER 860 HC (0 other reports)

A collusive scheme intended to avoid the application of the Transfer of Undertakings Regulations, whereby the transferor's business and assets were "hived down" and transferred first to a subsidiary company and then to the ultimate transferee, was in substance a single transfer, holds the High Court in Re Maxwell Fleet and Facilities Management Ltd (in administration) (No.2) 20.1.00 High Court. Liability for employees dismissed before the purported "hive down" passed to the ultimate transferee by virtue of the application of the Litster principle. The employees were dismissed for a reason connected with the transfer, and were thus deemed to have been employed immediately before the transfer.