Employment News — 14 April 2014: parental control: employees were TUPE transferred after share purchase by subsidiary

Jackson Lloyd (JL) employed more than 400 people working at various sites on social-housing maintenance. When JL got into financial difficulties, its shares were bought by a subsidiary of Mears Group (MG). From the date of the share purchase, MG took over the running of JL, imposing major changes through its integration teams and telling the employees they would be moving to MG. For commercial reasons, to avoid triggering a re-tendering process for JL’s contracts, the outward appearance given was that JL was an autonomous competitor of MG. However, the tribunal found that in reality, from the date of the share purchase, JL was merely a trading name and day-to-day control of its business activities had passed to MG. Apparently, the employees knew nothing of the existence of the subsidiary at the time…

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