§ Mr. Gordon PrenticeTo ask the Secretary of State for Employment what assessment he has made of the effect on companies in receivership of the Transfer of Undertakings (Protection of Employment) Regulations 1981.
§ Mr. Michael ForsythThe regulations give effect to the EC acquired rights directive. The directive and the regulations are both capable of applying to transfers of businesses or parts of businesses in receivership as well as to solvent undertakings. Insolvency practitioners have made many representations about the adverse effect of the regulations on the prospects for the sale of all or part of an insolvent business, whereby businesses which might otherwise have been rescued have been liquidated and jobs have been lost. The Government believe that this is a clear example of EC legislation having a detrimental effect on employment and have brought this to the attention of the European Commission.