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Administrators of companies can furlough employees as an alternative to redundancy (Re Carluccio’s Ltd)

Published on: 20 April 2020
Published by: LexisPSL
  • Administrators of companies can furlough employees as an alternative to redundancy (Re Carluccio’s Ltd)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Case details

Article summary

Restructuring & Insolvency analysis: This case confirms that the furlough scheme, implemented to mitigate the economic impacts of the restrictions imposed on businesses to combat the spread of the novel coronavirus (COVID-19) can be used by administrators as an alternative to redundancy provided there is a reasonable likelihood of the employees returning to work for the company or for another employer who has acquired the business following a sale by the administrators. Written by Phillip Patterson, barrister, at Hardwicke. or take a trial to read the full analysis.

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