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TUPE: Automatic transfer of employees where transferor in administration

This report relates to 1 case(s)

In OTG Ltd v Barke and other appeals [2011] IRLR 272 EAT, the EAT held that the purpose of administration proceedings under the Insolvency Act 1986 is to rescue the business as a going concern, not to liquidate its assets. Accordingly, employees of a business in administration will transfer under TUPE when the business is sold to a transferee.