New ISG Ltd v Vernon & Ors

New ISG Ltd v Vernon & Ors

The Respondents validly objected to the transfer under regulation 4(7) TUPE 2006, as they were not informed of the transferee's identity before the transfer; restrictive covenants are not enforceable by New ISG; the injunctions should not be continued.

Parties
Claimant: New ISG Limited; Defendant: Benjamin John Vernon; Defendant: Joseph David McMullin; Defendant: Tracey Suzanne Harvey; Defendant: Bryan Harvey; Defendant: Stacey Dee Austin
Jurisdiction
England and Wales
Judgment Date
14 November 2007
Procedural Posture
Interim Injunction Application / Ruling on Continuation of Interim Injunction Pending Trial
Outcome
Interim injunctions not continued; application refused.
Legal Topics
Transfer of Undertakings (tupe), Restrictive Covenants, Interim Injunctions, Employee Rights, Consultation Obligations
Employment Law Insolvency Law Transfer of Undertakings (tupe) Restrictive Covenants Interim Injunctions Employee Rights Consultation Obligations

Case Brief

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Parties

New ISG Limited

Claimant

Benjamin John Vernon

Defendant

Joseph David McMullin

Defendant

Tracey Suzanne Harvey

Defendant

Bryan Harvey

Defendant

Stacey Dee Austin

Defendant

Procedural Posture

Interim Injunction Application / Ruling on Continuation of Interim Injunction Pending Trial

Legal Issues

  1. 1 Whether the Respondents' employment contracts transferred to New ISG under TUPE 2006
  2. 2 Whether objections under regulation 4(7) TUPE 2006 were valid and timely
  3. 3 Whether restrictive covenants are enforceable by New ISG

Ratio Decidendi

The Respondents validly objected to the transfer under regulation 4(7) TUPE 2006, as they were not informed of the transferee's identity before the transfer; restrictive covenants are not enforceable by New ISG; the injunctions should not be continued.

Court Disposition

Interim injunctions not continued; application refused.

Orders

  • Restraining order relating to confidential information to continue to trial.
  • Restrictive covenant injunctions not continued pending trial.