Employer liability

Case 10:The facts

The company that Mr Tucker worked for went bust. It had arranged for the sale of part of the company (including the section where Tucker worked) to a new company but had failed to consult on this transfer as required by law. Tucker wanted to take a claim for failure to consult. There was no point, however, in taking a claim against the old employer, since the company was in liquidation and had no funds. Tucker brought the claim against the new company.

The ruling

The EAT upheld Tucker's claim that the new company was liable for the failure to consult and was therefore responsible for any payment of compensation that a tribunal might award against it for this failure.

* Alamo Group v Tucker [2003] IRLR 266