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Thomas v On Reflection Ltd and ors - Transfer of Undertakings and insolvency [2006] EAT

A company became insolvent. Another company took over some of its operations. Dismissed employees of the insolvent company attempted to bring unfair dismissal claims against the other company on the basis that the TUPE regulations applied and so the other company was responsible to them.

This claim failed before a Tribunal, essentially on the basis that the TUPE regulations did not apply as no stable economic entity had been transferred from the insolvent company to the other.

The EAT dismissed an appeal as the original tribunal had made no error of law.

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