This is a preview. To continue reading please log in or Register to read this article

Transfer of undertakings: Refusal to transfer need not be "informed"

This report relates to 1 case(s)

  • expand disabled

    Eastmond and others v Ladies' Health & Fitness Club Ltd [2004] All ER (D) 145 (Apr) EAT (0 other reports)

Key points

In Ladies' Health & Fitness Clubs Ltd v Eastmond and others, the EAT holds:

  • There was a transfer of undertaking within the meaning of the TUPE Regulations where company A entered into a licence agreement with company B, under which company B was to run company A's business, and did so for a brief period before the licence was terminated by receivers and a new licence granted to company C after 10 days.
  • The fact that the transfer from company A to company B was in breach of a contract, which company A had with the owners of company C, did not prevent there being a TUPE transfer.
  • Whether the hostility shown by the employees of company A to the receivers and to the owners of company C amounted to an "objection" within the meaning of TUPE regulations 5(4A) and 5(4B), sufficient to prevent them for transferring to company C, would be remitted back to the same tribunal for reconsideration.
  • It was not the case that such an objection must be an "informed" objection, but the decision in Hay required that if there was an objection it must amount to a refusal to transfer.