Jackson Lloyd Ltd & Mears Group PLC v Smith & Ors Posted In: Case Law
Legal BodyEmployment Appeal Tribunal (UKEAT)
Type of Claim / JurisdictionCollective and Trade Union Issues, Transfer of Undertaking (TUPE)
This is a very unusual case of a purchase of shares being identified as leading to a transfer of an undertaking.
Jackson Lloyd Ltd (JL) was engaged in the repair and maintenance of social housing and had some 400-500 employees. It got into severe financial difficulties and Mears Ltd (ML), the subsidiary company of Mears Group Plc (MG), purchased 100% of the shares of JL.
So far, so not TUPE i.e. it is the ownership of the entity operating the business that changes hands in a share sale and not the ownership of the actual business itself. Assuming TUPE did not apply, no consultation over a TUPE transfer took place with employee representatives.
So, what made this share purchase, which the
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