The employment tribunal in London found that Rightsline had failed to inform or consult employees prior to the transfer, breaching statutory obligations. Moreover, the newly formed entity, Rightsline U.K. Ltd., did not uphold her employment conditions, instead making her redundant shortly after the transition — a move the tribunal deemed unlawful.
Armbruster had worked for Rightsline since 2020 and played a pivotal role in supporting high-profile entertainment industry clients, including major studios and digital platforms. Her role involved implementing and maintaining Rightsline’s IP software — critical for tracking royalties, contracts, and licensing across global markets.
Despite her deep knowledge of the company’s systems and clients, Armbruster was excluded from strategic discussions about the transfer, and decisions were made behind closed doors. She was left unclear on who her employer was, what her role would be post-transfer, and how her rights would be protected.
The tribunal held that this mishandling caused significant personal and financial stress. Rightsline argued that the transfer had been legally compliant and claimed that the redundancy was driven by financial necessity. However, the tribunal rejected this defense, citing a failure to follow fair procedure and consultation under employment law.
“This case underscores the importance of transparency and legal compliance during corporate restructures,” the tribunal stated. “Ms. Armbruster’s treatment fell well short of the standard expected in employee transfers.”
In awarding £77,000 in compensation, the tribunal accounted for unfair dismissal, breach of TUPE regulations, and the emotional toll the mishandled process had taken on Armbruster.
Legal experts note that the case sends a warning to tech and IP firms managing cross-border operations, especially in the post-Brexit employment landscape. “Software companies operating in the intellectual property sector often deal with complex organizational structures. If they don’t get employment law right during transitions, the penalties — financial and reputational — can be severe,” said employment law consultant Angela Barrett.
