Employees can’t assume that the rights they earnt through long service will still apply if their employer is in administration
Iain Barton
Publication date:
15 January 2009
What happens to the employees of an insolvent business when it is sold? Do they transfer to the new owner and are they covered by the Transfer of Undertakings (Protection of Employment) Regulations 2006 (Tupe)? As the recession deepens and the number of insolvencies increases, these questions are becoming highly topical.
In Oakland v Wellswood (Yorkshire) Limited (UKEAT/0395/08), the Employment Appeal Tribunal delivered the controversial decision that employees did not transfer to the purchaser of a business in administration.
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