High Court, Chancery Division on 14th November 2007 reported at [2008] IRLR 115 and at [2008] ICR 319

NOTES

  • New ISG Ltd v Vernon, McMullin, Harvey and Austin, ChD on 14th November 2007, High Court, Chancery Division on 14th November 2007 reported at [2008] IRLR 115 and at [2008] ICR 319.
  • the full text of this judgment is available free of charge on the BAILII website

    Representation:

  • Iain Pester for New ISG Ltd, the claimant.
  • Simon Devonshire for the Mr Vernon and Mr McMullin,first and second defendants.
  • Shaen Catherwood for the third and fourth defendants.
    Authority for the propositions that:-

    1. although the law requires the owner of a business who is considering disposing of it (by a relevant transfer) to inform and consult employees about the proposals before he does so (TUPE regulations 2006 (SI 2006/246) reg 13), his failure to do this will not prevent the employees from exercising their right to opt out of provisions by which their employment contracts are automatically transferred to the new owner (TUPE regulations 2006 (SI 2006/246) reg 4(7)).
    2. there is no prescribed method for employees to opt out of the provisions (in TUPE regulations 2006 (SI 2006/246) reg 4) under which their employment contracts are automatically transferred to the new owner of a business which has been transferred by a relevant transfer. Therefore letters of resignation can be construed as exercise of the right to opt out provided the period between eventual notification of identity of new employer and the resignation is not sufficient to be construed as an affirmation of the contract.

    For relevant general notes see Transfer of business or undertaking/opting out


    FINISH>
    preapred January 2008