This resolution, although not new, is only infrequently used and this is why we have reported this ruling rendered on 07 September. The company in question had transfered its repairs and maintenance activity to a business created by former managers. Within two years the company was subsequently placed into liquidation. In deciding that UPS SCS (France) had resorted to fraudulent conditions in order to cease its repairs business "in a bid to avoid/sidestep applying the relevant redundancy provisions", the Court concluded that the transfer of employment contracts was null and void and thus deduced that the ensuing redundancies were also null and void and so the relevant employees should be reinstated within UPS SCS.
In its ruling the Court affirmed that UPS SCS (France) “had all necessary information to realize its business plan, set up with former senior staff, was not realistic,” especially since it was aware that indispensible contractual relationships it held with a client company (HP), in order to carry out the business activity had been compromised.
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