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Onging/continuos employment after sale of business

(6 Posts)
Aim98 Wed 29-Oct-14 10:01:31

Hi there, really hoping someone can help although I know its a really weird situation!
I'm in the process of selling my business to a competitor who would like to keep me on as general manager when she takes over. I joined the business 8 years ago with my Mum (who owned it then) and in Jan 14 she resigned with poor health naming me as sole MD and Company Director whilst we were trying to sell the business.
Im very happy to be staying on with the new owners who I get on well with (so far), but we're now hitting a few issues. The first one is that I personally consider myself an employee of the business. I pay PAYE and NI, I get weekly wage slips (all done via accountant). New owners believe that I am NOT employed as I am a managing director so when I effectively re-start work in Jan 15 (after a months unpaid break which is my choice over Dec) they want me to sign a new contract with them.
Now, I wouldn't usually have a problem with this BUT I have just found out (literally 2 days ago) that I am pregnant, due in Late June. IF I have to sign a new employment contract then I am going to miss out on any form of Maternity Allowance/Statutory Maternity Pay by ONE week (yes, one!) as by the time my little ones due I will have been with the new owners and under contract with them for 25 weeks!!....I believe 26 weeks is the minimum term you can claim it :-( Whereas If my employment contract effectively just rolls over with the new owners then Id be entitled to what I would consider my rights.
This is extremely frustrating for me as effectively I've put off having a family for 8 years whilst trying to run this business and keep it afloat for my Mum, then the minute we agree to sell I find out im pregnant but not going to be entitled to anything (or will I??)
Any help or advice would be so gratefully received!

Lonecatwithkitten Wed 29-Oct-14 11:39:52

If you are on payroll you should be transferred over to them under TUPE regulations and your terms and conditions are protected for a certain period and you have continuous service.

maggiethemagpie Sun 02-Nov-14 21:00:48

You own a business and are on your own payroll as your own employee? That does sound a bit strange - I am not sure if TUPE would apply. Maybe Flowery can help.

Don't see why you wouldn't get maternity allowance though, that is from the state and apart from the first six weeks is the same as SMP. Its dependent on your earnings in the period preceeding your maternity leave so shouldn't be affected by a break in contract.

flowery Sun 02-Nov-14 21:39:22

It's perfectly normal maggie. smile I myself own two limited companies and am employed by one of them. I pay myself a basic salary and take any additional income in the form of dividends. I got SMP through that company when I had DS2.

OP I expect you are no longer reading but yes TUPE would apply. The prospective new owners don't get to decide whether you are an employee or not, it's a fact.

Hoppinggreen Mon 03-Nov-14 11:29:02

My DH is MD of his and he is an emloyee as well ( PAYE etc) so you can be both.

Hoppinggreen Mon 03-Nov-14 11:29:49

Sorry typos- he is MD of his company AND and employee!!

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