TUPE can not be avoided despite administration of a Company

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

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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.

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