Temporary pause in activities

There can be a business transfer even if there is a temporary pause in activities before a sale. The fact of the pause, why it happened and how long it lasted are all factors to weigh up when deciding whether there has been a transfer.

For example, in Wood v Caledonian Social Club Limited EAT/0528/09, a bar suspended operations after it lost its alcohol licence, and bartender Mr Wood was dismissed. When the bar reopened a few weeks later under new management, Wood was able to claim for automatically unfair dismissal against the new owners of the business under TUPE.

By contrast, in ALNO (UK) Limited v Turner [2016] UKEAT/0349/15, the closure of a workplace for 18 months was one reason why no transfer took place. Everything depends on the specific facts of the case.