TUPE: Automatic transfer of employees where transferor in administration
This report relates to 1 case(s)
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OTG Ltd v Barke and other appeals [2011] IRLR 272 EAT (1 other report)
This Court of Appeal in Key2Law (Surrey) LLP v De'Antiquis has approved the approach taken in this case, preferring the rigid rule that administration can never constitute "analogous insolvency proceedings" under reg.8(7) of TUPE.
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.
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