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Transfer of undertakings: Purchase and resale of business amounted to "series of transactions"

This report relates to 1 case(s)

Key points

  • In Key Communications Ltd v Rose and others 5.7.2002, EAT/1292/00, the EAT holds that, where two businesses were sold as separate entities to a transferee by receivers, one of which was purchased on behalf of a third party and later sold to that third party, this constituted "a series of two or more transactions" within the meaning of the TUPE Regulations and, as a result, there was then a transfer of the business to the final buyer. This was because that further transaction was always contemplated and conceived by the parties, and so took effect as part of a series.
  • Where employees are not taken on following a transfer of an undertaking, the employment tribunal must make explicit findings as to what happened to their contracts of employment by undertaking a rigorous analysis of the mechanism of dismissal or termination of those contracts.