The EAT has ruled that a temporary cessation of activity will not prevent a transfer of an undertaking.
A social club employed the claimant as a full time bar steward, who was dismissed after the club handed back its lease on the bar and surrendered its premises licence. Another employer then took over the bar, obtained their own premises licence and employed their own casual staff.
The EAT held that the economic entity (the bar) was merely temporarily suspended by the loss of the premises licence and as the economic entity did not cease, there was still a relevant TUPE transfer.
Wood v London Colney Parish Council