Representation:

• the fact that an employee is on long term sick leave when ownership of the business in which he is employed is transferred to a new owner does not prevent his contract being automatically transferred to the new owner under TUPE regulations 1981 (SI 1981/1794) reg 5. Like a person on holiday, on study leave or on maternity leave, a person on sick leave remains employed in the undertaking even though he is not actually at his place of work.

• for purposes of establishing whether an operation counts as part of an undertaking for purposes of the TUPE regulations (notably, whether there has been a "relevant transfer" within TUPE regs 1981, reg 3), there is no requirement that the part transferred should have existed as a discrete and identifiable "stable economic entity" before the transfer. It is sufficient if it becomes identified for the first time as a separate economic entity on the occasion of the transfer separating it from the rest.

editor's note:
Leave to appeal to the House of Lords was refused, by the House of Lords, on 18th October 2004 - see [2005] ICR 512, HL.

For relevant general notes see notes at Transfer of business or undertaking/who to sue? and/or Transfer of business or undertaking/transfer of part of undertaking and/or Transfer of business or undertaking/what is an ''undertaking''? .