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Transfer of undertakings: No prospective purchaser at time of dismissal

This report relates to 1 case(s)

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    Ibex Trading Co Ltd (in administration) v Walton [1994] IRLR 564 EAT (0 other reports)

    The Court of Appeal in Spaceright Europe Ltd v Baillavoine and another decided that, for there to be an automatically unfair dismissal under TUPE, there does not need to have been a particular transfer or transferee in existence or in contemplation at the at the time of the dismissal. The Court of Appeal disapproved the EAT on this point.

Employees who were dismissed before any offer had been made to buy their employer's business were not dismissed by reason of a transfer, or for a reason connected with that transfer, holds the EAT in Ibex Trading Co Ltd (in administration) v (1) Walton and others (2) Alpine (Double Glazing) Co Ltd. At the stage of the dismissals, the transfer was a "mere twinkle in the eye" and might never have occurred.