Restructuring & Insolvency Review

    View Authors February 2011

    Employees Transfer to the Buyer on Administration Sales – As We First Thought

    The Employment Appeals Tribunal (“EAT”) held in Otford Tool and Gauge Co Ltd v Barke (and others) (“OTG”) that all administration proceedings fall within regulation 8(6) of Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE”) and the EAT decision in Oakland v Wellswood (Yorkshire) Limited [2009] IRLR 250 (“Oakland”) has not been followed. As a result, on a business sale by a company in administration, the employees will transfer to the buyer.