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A recent EAT decision makes it worth revisiting the meaning of regulation 4(9) in the Transfer of Undertaking (Protection of Employment) Regulations 2006: Reg 4(9): Subject to regulation 9, where a relevant transfer involves or would involve a substantial change in working conditions to the material detriment of a person whose contract of employment is or [...] Most employment practitioners will have dealt with redundancies and TUPE issues following a company going into administration. This week’s File on 4 was an interesting look at whether the current insolvency regime might not be counter-productive in the current downturn. The 2003 Enterprise Act was designed to make going into administration easier, quicker and cheaper with [...] TUPE 2006 still hasn’t produced much caselaw on service provision changes, but one thorny point has been helped by the case of Kimberley Group Housing Ltd v. Hambley & Ors (UK) Ltd [2008] which deals with ’split’ service provision. By way of reminder, the event that triggers a transfer under the service provision change provisions is [...] …it’s not exactly straightforward either, but any competent adviser can identify warning signs that mean the issue should be looked at. Say, for example, Mr Bloggs is tired of running Bloggs pharmacy, so he closes it and reaches a financial agreement with the local Londis or Spar or whatever that they’ll plonk a Bloggs Pharmacy at the [...] It’s a cynical view that all you do when your company goes bust is put it into administration and buy it back, but would seem to be amply demonstrated by this case. Company goes into administration, administrator has no money for wages so sacks all the staff, then duly sells business back to original owner. Is [...] |
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