Commentary

235.6 Transfer of an insolvent business

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

235.6 Transfer of an insolvent business

| Commentary

235.6 Transfer of an insolvent business

Where a transferor employer is subject to relevant insolvency proceedings1, the Transfer of Undertakings (Protection of Employment) Regulations 2006 (‘the TUPE Regulations’) make various special provisions with the aim of assisting the rescue of the failing business.

First of all, the TUPE Regulations reduce the potential expenses of the transferee by providing that some of the transferor’s pre-existing debts to the employees do not pass to him, namely any obligations to pay the employees statutory redundancy pay or sums representing various debts to them, such as arrears of pay, payment in lieu of notice, holiday

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial