Tag Archives: Employment

There’s Gold in Them Thar Employee Benefit Trusts … Fool’s Gold

EBTs – The Good Employee Benefit Trusts (“EBTs”) have become prevalent in recent years. They were originally devised as a form of discretionary trust to benefit employees and in most cases continue to be operated as a legitimate part of employee incentive plans, such as to house shares for distribution to employees. EBTs – The … Continue Reading

A TUPE sting in the tail – Project Viva Limited (In Administration)

An employment tribunal has recently confirmed that employees who have been unfairly dismissed from an insolvent employer can bring an action against a connected successor company. The tribunal held that there was a ‘commonality of ownership’ between the original and successor companies and that it was correct as a matter of public policy that employees should be able … Continue Reading

Beware French Employees’ Remedy for Damage to their “Individual Interests”

It is not always easy to prioritize between the various goals pursued in every insolvency legislation, namely; the continuation of the company, preservation of the jobs, the general economic/public interest and the payment of dividends to creditors. There is no clear hierarchy in French law amongst these major targets and French case law appears fairly pragmatic. … Continue Reading

PPF updates guidance for restructuring and insolvency practitioners

Since its inception in 2005, the PPF has been a welcome safety net for employees whose company pension scheme is in deficit and the sponsoring employer is on the verge of insolvency. The PPF’s major challenge has been preventing employers from deliberately engineering or recklessly creating such deficits in the pension scheme (to the benefit … Continue Reading

Pension Issues On Corporate and Personal Insolvency

Unless you have been hiding in an igloo in Antarctica for the last year you could not possibly have missed the media furore over the huge pension liabilities of eminent companies that have become insolvent. BHS, a venerable British retailer, is the most high profile after recently entering administration with an estimated pensions deficit of … Continue Reading

Tread CAREfully, mind the funding gap…….

The health and social care sector is currently facing its most significant challenge since the Southern Cross care-homes collapse in 2011. A financial crisis is on the horizon, resulting from the unwelcome trifecta of rising staff costs, significant funding cuts and a steadily increasing regulatory burden. In the five years since the Southern Cross collapse … Continue Reading

Information and consultation in insolvencies – who wins, really?

The Employment Tribunal ruled last month that ex-employees of Sahaviriya Steel Industries UK Limited (in liquidation) (“SSI”) are entitled to the maximum protective award for a complete failure by SSI to inform and consult with them about their redundancies (90 days’ pay for each of the 1100 employees affected). Because of the insolvency of SSI … Continue Reading

Sunny side up or sunny side down (what is it with pension liabilities . . .)?

The latest iteration of the Sun Capital litigation has confirmed once again what many restructuring professionals have known for a long time – that pension liabilities have a nasty habit of kicking investors where it hurts, often when least expected. Our recent blog explains the decision and provides some insights on the case. One of … Continue Reading

The Conundrum of Collective Consultation

During the previous UK government’s tenure, in March 2015 a call for evidence was launched to understand better the employee consultation process when an employer faces insolvency, restructure or other form of company rescue (Call for Evidence on Collective Redundancy Consultation for Employers facing Insolvency). The call for evidence sought views on the following areas: the understanding of … Continue Reading

France names 18 Specialised Commercial Courts to deal with Largest Insolvencies

The Macron law of 7 August 2015, named after the current Minister of the Economy, anticipated the establishment of specialised commercial courts which will process the most complex insolvency proceedings. Currently, any of the 134 French commercial courts can be applied to; the choice being mainly the location of the distressed company’s headquarters. This new arrangement aims to improve … Continue Reading

City Link verdict is … NOT GUILTY!

The directors of the failed courier company City Link had a good reason to celebrate this weekend after the dismissal of criminal charges brought against them for failing to notify the Department for Business, Innovation and Skills (“BIS”) of their intention to make City Link’s circa 2,500 employees redundant last Christmas. As explained in an earlier blog by our employment … Continue Reading

Consult in UK redundancies or be fined…….

The suitability of the collective consultation regime under the Trade Union and Labour Relation (Consolidation) Act 1992 (“TULRCA”) in an insolvency scenario has always been a hot topic amongst insolvency professionals. The recent case of West Coast Capital (USC) Limited (“USC”) provides a stark example of the hard-line approach the Secretary of State for Business … Continue Reading

The Wonder of Woolies – Good News for UK Insolvency Practitioners

The European Court of Justice has today given its decision in the “Woolworths case” on the duty to consult collectively under the Collective Redundancies Directive, in particular defining the meaning of “establishment” for the purposes of determining when that duty is triggered. This follows on from our earlier post on 5 February 2015 after the Advocate … Continue Reading

The wonder of Woolies – good(ish) news for UK insolvency practitioners

The European Advocate General has today given his opinion in the “Woolworths case” (and two other cases) on the meaning of “establishment” for the purposes of determining when the duty to consult appropriate representatives is triggered under the European Collective Redundancies Directive (the Directive). The good news for insolvency practitioners (IPs) faced with potential consultation is that … Continue Reading

UK Employment Appeal Tribunal Gives Ruling on Holiday Pay Cases

On November 4, 2014, the Employment Appeal Tribunal announced its eagerly awaiting ruling in the case of Bear Scotland Ltd. v. Fulton & anor and other consolidated holiday appeals. These cases addressed the requirement to include non-guaranteed overtime, where an employer is not contractually obliged to offer overtime pay but a worker is contractually obliged … Continue Reading
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