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Injunction restraining termination of employment contract is upheld despite company’s insolvency
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Court of Appeal dismisses appeal of High Court interlocutory order restraining the termination of employment of the respondent and ordering the payment of his salary to continue after his employer Irish Pride Bakeries became insolvent, on the grounds that: 1) the respondent established before the High Court a strong case that the purported termination was not in accordance with the notice provisions in the contract; 2) a receiver does not have the power to do anything which the company itself could not do; 3) the trial judge was correct in not considering the substance of the claim made by the respondent as being one for damages for breach of contract; and 4) trial judge was entitled to exercise his discretion on the balance of convenience in favour of making the order directing the continued payment of salary to the respondent.
Employment law – appeal of High Court interlocutory order restraining termination of employment and order directing payment of salary – EC (Protection of Employees on Transfer of Undertakings) Regulations 2003 – receivership – whether the trial judge was wrong to direct the continuing payment of salary given the insolvency of the appellant – sub-ss. 437(2) and (3)(m) of the Companies Act 2014 – respondent established before the High Court a strong case that the purported termination was not in accordance with the notice provisions in the contract – s. 7(1) of the Redundancy Payments Act 1967 – trial judge was correct in not considering the substance of the claim made by the respondent as being one for damages for breach of contract – trial judge was entitled to exercise his discretion on the balance of convenience in favour of making the order directing payment of salary – s. 440 and Part 11 Companies Act 2014 – appeal dismissed.
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