The European Court of Justice has held that "pre-pack" administration, which is designed to facilitate the sale of a business as a going concern in the event of insolvency, may not prevent employees from having TUPE rights.
Updated to include details of the increase in the maximum amount of a week's pay for payments by the Secretary of State, effective from 6 April 2017.
A Northern Ireland tribunal has awarded protective awards of 90 days' pay to former City Link employees over the company's failure to consult on their redundancies.
In DLA Piper's latest case report, the Employment Appeal Tribunal examined the TUPE provisions that mean that employees do not automatically transfer where the transferor is "under the supervision of an insolvency practitioner".
In DLA Piper's case of the week, AEI Cables Ltd v GMB and others, the Employment Appeal Tribunal held that the employment tribunal, when setting a protective award for failure to inform and consult on redundancies, should have taken account of the period during which the company was insolvent.
Updated to reflect an increase in the cap on a week's pay, with effect from 6 April 2017.
Updated to take into account an increase in the cap on a week's pay, with effect from 6 April 2017.
Definition from the XpertHR glossary.
In Pressure Coolers Ltd v Molloy and others  IRLR 630 EAT, the EAT held that, in circumstances where a dismissal occurred after a TUPE transfer, the transferee was liable for awards for unfair and wrongful dismissal. The fact that the transferor had been in administration did not create a deemed dismissal on the date of transfer in respect of which the Secretary of State became liable to make payments. On the facts, the insolvent transferor had not effected any dismissal.
HR and legal information and guidance relating to insolvency.