The long awaited Transfer of Undertakings (Protection of Employment) Regulations 2006 (2006 Regulations) came in to force on 6 April 2006. The 2006 Regulations have already come under attack from organisations such as the Association of Business Recovery Professionals who believe the 2006 Regulations cause "unprecedented confusion" as to the position when a transfer follows the insolvency of an employer.
The House of Lords acted on these concerns by tabling a motion for annulment. The motion was debated on 3 May 2006 and defeated by 79 votes to 77. The 2006 Regulations survive, however insolvency practitioners and legal advisers are left to grapple with the uncertain provisions relating to business recovery on insolvency. It may be that clarification in this area will only be achieved in time through case law.