| Commentary

32 Employment implications

| Commentary

32 Employment implications

Company groups are of some significance in the employment context as the different companies in a group may count as ‘associated employers’. The Employment Rights Act 1996 Section 231 provides that for the purposes of the Act any two employers will be treated as associated if:

  1. 32.1

        one is a company of which the other (directly or indirectly) has control; or

  2. 32.2

        both are companies of which a third person (directly or indirectly) has control

and ‘associated employer’ is to be construed accordingly.

Case law has established that the definition is exhaustive and not merely illustrative and control has

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