Holis Metal Industries Ltd v GMB & Anor [2007] UKEAT 0171_07_1212 (12 December 2007)

Holis Metal Industries Ltd v GMB & Anor [2007] UKEAT 0171_07_1212 (12 December 2007)

TUPE 2006 applies to transfers of undertakings that are situated in the UK immediately before the transfer, even if the transferee is based outside the UK or EU. The absence of a restriction on the transferee's location in the regulations, and the clear wording of Regulation 3(1)(a), indicate that Parliament intended TUPE to apply in such circumstances. The protective purpose of TUPE and the ARD would be undermined if employers could avoid obligations by transferring businesses abroad. Therefore, the application to strike out the claim against the transferee (Holis) is refused.

Citation
[2007] UKEAT 0171_07_1212
Parties
Appellant: Holis; 1st Respondent: GMB; 2nd Respondent: Newell Ltd
Jurisdiction
United Kingdom
Judgment Date
12 December 2007
Procedural Posture
Employment Appeal / Appeal Against Refusal to Strike Out Claim at Pre Hearing Review
Outcome
Appeal dismissed
Legal Topics
Transfer of Undertakings (tupe), Collective Redundancy Consultation, Extra Territorial Application of UK Law, Employee Rights on Business Transfer
Employment Law Labour Law European Union Law Transfer of Undertakings (tupe) Collective Redundancy Consultation Extra Territorial Application of UK Law Employee Rights on Business Transfer

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Parties

Holis

Appellant

GMB

1st Respondent

Newell Ltd

2nd Respondent

Procedural Posture

Employment Appeal / Appeal Against Refusal to Strike Out Claim at Pre Hearing Review

Legal Issues

  1. 1 Does TUPE 2006 apply to a transfer of a business entity from the UK to a non-EU country?
  2. 2 Are employees entitled to consultation and information rights under TUPE and TULRCA when the transferee is based outside the UK?
  3. 3 Does the territorial scope of TUPE extend to protect UK-based employees when the business is transferred abroad?

Ratio Decidendi

TUPE 2006 applies to transfers of undertakings that are situated in the UK immediately before the transfer, even if the transferee is based outside the UK or EU. The absence of a restriction on the transferee's location in the regulations, and the clear wording of Regulation 3(1)(a), indicate that Parliament intended TUPE to apply in such circumstances. The protective purpose of TUPE and the ARD would be undermined if employers could avoid obligations by transferring businesses abroad. Therefore, the application to strike out the claim against the transferee (Holis) is refused.

Court Disposition

Appeal dismissed

Orders

  • Application to strike out the claim against the second respondent (Holis) is refused and dismissed.