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10 July 2012
Employment Appeal Tribunal
When solicitors for administrators of a company took over the activities previously carried out by an in-house lawyer employed by the company, there was no service provision change. This was because the activities carried out by the solicitors for the administrators were carried out for the administrators; whereas the in-house lawyer had carried out those same activities but on behalf of the company. This was so despite the statutory provision in the Insolvency Act 1986 that an administrator acts as agent for the company.
K was the ‘Director of Legal' of a company providing facilities management services in buildings built under PFI schemes. The group ran into financial difficulties as a result of which K's main job became to sell off the facilities management contracts to outside purchasers. The company went into administration. The administrators appointed SNR Denton, solicitors, to continue selling off the facilities management contracts. K complained to an employment tribunal that TUPE applied and she should have been transferred to SNR Denton.
The status of employment rights on the transfer of an undertaking is an extremely complex area of...