An opportunity for Insolvency Practitioners: no TUPE in pre-pack administrations?

The Employment Appeal Tribunal (EAT) has taken TUPE in a radical and, to Insolvency Practitioners (IP), perhaps a welcome direction. The effect of the decision in Oakland v Wellswood (Yorkshire) Ltd is that it does not apply where a business is bought out of a pre-pack administration. Well, probably.

This is TUPE, a byword for legal uncertainty, and at first glance the decision goes against the trend of nearly 30 years of employee protection. It also contradicts Government guidance on what TUPE means. But on the face of it, it is pretty clear and is consistent with Government policy (despite the Guidelines!) and with changes introduced to TUPE in 2006. And it might have even wider implications for purchases out of conventional administrations.

Read Wragge & Co's expert analysis of this important development.