7. INSOLVENCY

Special rules apply under TUPE where a business is insolvent. The rules, found in Regulations 8 and 9, are aimed at encouraging a rescue culture and preserving jobs. These rules have not been changed by the Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2014 (the 2014 Regulations).

The TUPE insolvency regime is only triggered where an insolvency practitioner has been formally appointed to take charge of the business before the transfer date (Secretary of State for Trade and Industry v Slater [2007] UKEAT 0119/07/2706).

TUPE distinguishes between:

• sales of the business as a going concern; and

• liquidation sales aimed at selling off the assets, paying off creditors and winding up the business.