CAN YOUR BOSS’S BOSS FIRE YOU? WHY THE “SEPARATE ENTITY” DEFENSE JUST FAILED IN COURT
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Feb
Feb
Date: 13.2.2026
The Court of Appeal recently established that a parent company possesses the legal authority to dismiss an employee working within its subsidiary. This landmark ruling overturned a previous High Court decision that had protected the worker under the “separate legal entity” principle. The judges determined that since the executive was originally appointed by the holding company, the organization functioned as a single economic unit regarding employment matters. Consequently, the employee’s refusal to respond to disciplinary actions from the parent firm was deemed unjustified. This verdict reinforces the ability of corporate groups to maintain centralized oversight over staff conduct and terminations across their different branches.
