The following Employment practice note Produced in partnership with Gowling WLG provides comprehensive and up to date legal information covering:
This Practice Note considers how the application of the Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 (TUPE 2006) is relaxed in insolvency situations.
This Practice Note contains information on subjects impacted by the UK’s withdrawal from the EU. For preliminary reading on the impact of Brexit on this subject area, see Practice Note: Brexit—implications for employment law.
Further guidance and materials on the legal terms and impact of Brexit are available in our Brexit toolkit. You may find it useful to refer to this material before continuing your research.
TUPE 2006, SI 2006/246 relaxes some of the rules which would otherwise apply, to make it easier to sell businesses that, at the time of the transfer, are subject to insolvency proceedings under the supervision of an insolvency practitioner.
For the proceedings to be under the ‘supervision of an insolvency practitioner’ there must have been a formal or informal appointment of someone in that role, simply acting in an advisory capacity is not sufficient.
There are two categories of supervised insolvency, each with different treatment under TUPE 2006:
businesses subject to insolvency proceedings instituted with a view to the liquidation of the transferor's assets: these are exempt from reg 4 (transfer of employment, employee liabilities etc) and reg 7 (automatic unfairness for transfer-connected dismissals)
businesses subject to insolvency proceedings instituted not with a view to
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