Industrious Ltd v Horizon Recruitment Ltd (in liquidation) and Vincent

Mrs Vincent resigned from employment with Horizon in December 2008. In 2009 the business of Horizon transferred under TUPE to Industrious Ltd. She brought a claim in the Employment Tribunal against Horizon and settled those claims by way of a Compromise Agreement in June 2009. On 22 July 2009 Horizon entered into a creditors’ voluntary liquidation. Mrs Vincent applied to set aside the Compromise Agreement on the basis that either Industrious or Horizon or both of them must have known they were not going to be able to comply with the payment provisions in the Compromise and misled her into entering the agreement on the question of their solvency. The issue for the Employment Tribunal to determine was whether it had jurisdiction to consider a challenge on the validity of the Compromise Agreement on the basis of misrepresentation or whether she had to bring separate proceedings in the county court to set aside the Compromise Agreement.

It was held that the tribunal did have jurisdiction to consider the enforceability of Compromise Agreements due to misrepresentation.