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Court of Appeal confirms that employment contracts of employees furloughed prior to the commencement of administration are adopted by administrators if they keep the employees furloughed (Re Debenhams Retail Ltd)

Court of Appeal confirms that employment contracts of employees furloughed prior to the commencement of administration are adopted by administrators if they keep the employees furloughed (Re Debenhams Retail Ltd)
Published on: 12 May 2020
Published by: LexisPSL
  • Court of Appeal confirms that employment contracts of employees furloughed prior to the commencement of administration are adopted by administrators if they keep the employees furloughed (Re Debenhams Retail 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: The Court of Appeal has upheld the decision of Trower J, declining to grant a declaration to the administrators of Debenhams that they would not be deemed to have adopted the employment contracts of furloughed employees if they took no active steps other than to pay those employees the sums reimbursed by the government under the Coronavirus Job Retention Scheme (CJRS). Written by Phillip Patterson, barrister at Hardwicke. or take a trial to read the full analysis.

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