When the current TUPE Regulations were introduced in 2006, one significant change from the 1981 Regulations was the introduction of new provisions, aimed at aiding recovery of businesses that were failing or had failed.
New clauses were added to stop the ordinary rules regarding automatic unfair dismissal for dismissals because of, or connected to, transfers from having effect when a “relevant insolvency procedure” occurred.
Insolvency practitioners, solicitors and academic commentators alike have all struggled with what may be a “relevant insolvency procedure” given that the terminology used in the legislation was open to interpretation. The Employment Appeal Tribunal has now brought clarification to the topic, which may be welcomed for clarity, but perhaps not so for the effect of the ruling.
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