Dobrucki and others v Secretary of Business Innovation & Skills

Employment – Continuity. The employees were transferred from a company in administration to a former 90% shareholder who purchased its business. Three days later the business closed. The employees claimed arrears of pay, and holiday pay, three claimed for unpaid notice pay, and one for a redundancy payment. The employment tribunal found that there had been a transfer under the Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 and that the transferor was liable for payments to the employees, which fell to the Secretary of State to discharge. The Employment Appeal Tribunal, in allowing the Secretary of State's appeal, held that reg 8(3) of the Regulations did not apply to debts which had not accrued as such by the time of the transfer. Accordingly the tribunal had erred in its conclusion. Those debts which accrued prior to the transfer remained the liabilities of the transferor. The Secretary of State was only liable for those sums owed to the employees prior to the transfer.

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