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Administrators, furlough and adoption of employment contracts: Court of Appeal judgment in Debenhams case - Re Debenhams Retail Ltd (In Administration) [CA] 06.05.20 (Unreported)

Administrators of a company, who had furloughed its employees pursuant to the government's coronavirus job retention scheme, were taken to have adopted the employment contracts of those employees within the meaning of the Insolvency Act 1986 Sch.B1 para.99(5). The test as to whether they had done so was the wholly objective one as to whether they had "continued" the employment of the relevant employees.
Category: Insolvency » Administration orders. Keyword(s): Employment contracts; Coronavirus; Furlough. Area(s) of law: Employment; Litigation; Corporate and Commercial Law.
Source: [2020] EWCA Civ 600.

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