Court of Appeal decides administrator’s dismissals were for ETO reason

Dismissals as a result of a business transfer will not be automatically unfair under TUPE where the reason is an economic, technical or organisational reason entailing changes in the workforce (ETO reason). But in the 2011 case Spaceright Europe Ltd v Baillavoine, the Court of Appeal said that an administrator’s wish to make a business more attractive to potential transferees cannot amount to an ETO reason; to be an ETO reason, the reason for dismissal must be to continue the business with a changed workforce rather than a desire to achieve a sale…

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