TUPE can not be avoided despite administration of a Company


The Court of Appeal, ruled that a company in administration was not exempt from the rules of TUPE.

Author: Dennis Chapman
Reading time: 1 minute

This article is 10 years old.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

In the recent ruling of Key2Law (Surrey) LLP v De’Antiquis the Court of Appeal, ruled that a company in administration was not exempt from the rules of TUPE. As administration is a more stepping stone to insolvency or bankruptcy proceedings, it cannot trigger the relevant exemptions under Regulation 8 (7) of the 2006 TUPE regulations.

Regulation 8(7) states: Regulations 4 and 7 do not apply to any relevant transfer where the transferor is the subject of bankruptcy proceedings or any analogous insolvency proceedings which have been instituted with a view to the liquidation of the assets of the transferor and are under the supervision of an insolvency practitioner.

The court held in this case Regulation 8(7) was not triggered until it was known if there was an intention to liquidate the assets of the Company. Administration may lead to several avenues, and thus cannot be deemed as an automatically assumption of liquidation.

Dennis Chapman

In remembrance of Dennis Chapman 1951 -2015

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.