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Transfer of undertakings: Liability arising under previous contract was transferred

The liability of the transferor of an undertaking for alleged unlawful sex discrimination against an employee was transferred to the transferee by the Transfer of Undertakings Regulations, even though the act of discrimination complained of did not arise out of the contract of employment existing between the transferor and the employee at the date of the transfer, holds the EAT in DJM International Ltd v Nicholas [1996] IRLR 76. The fact that that act was done in respect of an earlier contract of employment between them, which ended before that date, did not make it any the less something done by the transferor to the employee as a person employed in the undertaking transferred. As such, it was deemed by the Regulations to have been done by the transferee.