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TUPE – now applies to businesses bought out of administration
The judgement in an Employment Appeals Tribunal case last week means that the Transfer of Undertakings for the Protection of Employment (TUPE) now applies in full to transactions where business are being bought out of administration. Employees who work in businesses that are being sold by administrators will therefore be protected on a sale of the business they work in, unless there is a genuine redundancy or other fair reason for dismissal. So if you are planning on buying a business, you need to take account of this fact and the potential liabilities involved as part of your due diligence enquiries.
Posted on 19 Nov 2016

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