The existence of the moratorium on litigation against a company in administration presents a significant impediment to many employees seeking to enforce employment rights. The recent case of Ince Gordon Dadds LLP and ors v Tunstall and ors UKEAT/0141/19/JOJ (Tunstall) considers the extent of the moratorium and in particular demonstrates that if claims are sought against individuals, not simply the company, the moratorium does not extend to those individuals. Moreover, if TUPE applies the transferee does not benefit from the bar on litigation against the insolvent employer.
The claim
Tunstall sought to claim unfair dismissal and discrimination claims in addition to automatic unfair dismissal under TUPE. She had named the partners of the LLP employer as individual respondents as well as the new company acquiring the business under TUPE.
The facts
Tunstall was a solicitor who worked for the first and subsequently second respondent employer who had gone into administration. The third, fourth, fifth, sixth and seventh respondents were employees or agents
