Edcrest Ltd v Swift Transport Services Ltd & Ors [1995] UKEAT 448_95_0512 (5 December 1995)

Edcrest Ltd v Swift Transport Services Ltd & Ors [1995] UKEAT 448_95_0512 (5 December 1995)

The Industrial Tribunal erred in law by relying on irrelevant factors (the reason for Edcrest's loss of contract and considerations of commonsense and equity) in determining whether there was a transfer of an undertaking under the 1981 Regulations. The correct approach is to assess whether the economic entity retained its identity after the alleged transfer, considering all relevant circumstances. The matter must be remitted to a differently constituted Tribunal for proper determination.

Citation
[1995] UKEAT 448_95_0512
Parties
Appellant: Edcrest Ltd; 1st Respondent: Swift Transport Services Ltd; 2nd Respondents / Applicants: Mr G M Taylor and others
Jurisdiction
United Kingdom
Judgment Date
05 December 1995
Procedural Posture
Employment Appeal / Appeal Against Industrial Tribunal Decision on Preliminary Issue
Outcome
Appeal allowed; matter remitted to a differently constituted Industrial Tribunal
Legal Topics
Transfer of Undertakings, TUPE Regulations, Unfair Dismissal, Redundancy Pay

Case Brief

Summary, issues, holding and outcome

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Parties

Edcrest Ltd

Appellant

Swift Transport Services Ltd

1st Respondent

Mr G M Taylor and others

2nd Respondents / Applicants

Procedural Posture

Employment Appeal / Appeal Against Industrial Tribunal Decision on Preliminary Issue

  1. 1 Whether there was a transfer of an undertaking under the 1981 Transfer of Undertakings Regulations from Edcrest Ltd to Swift Transport Services Ltd
  2. 2 Whether the Industrial Tribunal erred in law in its determination of the preliminary issue

Ratio Decidendi

The Industrial Tribunal erred in law by relying on irrelevant factors (the reason for Edcrest's loss of contract and considerations of commonsense and equity) in determining whether there was a transfer of an undertaking under the 1981 Regulations. The correct approach is to assess whether the economic entity retained its identity after the alleged transfer, considering all relevant circumstances. The matter must be remitted to a differently constituted Tribunal for proper determination.

Court Disposition

Appeal allowed; matter remitted to a differently constituted Industrial Tribunal

Orders

  • The appeal is allowed.
  • The preliminary issue is remitted for hearing by a fresh tribunal.