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Quick help re:employment law needed

6 replies

bogeyface · 10/06/2012 15:28

I need some quick help as something has come to light this afternoon and ACAS isnt open til tomorrow.

If a businessman was buying a unit from a large chain, lets say a pub from Wetherspoons (it isnt that but its serves as a good example), then would Wetherspoons have to pay redundancy to its employees if businessman intended to keep them all on? I understood that TUPE protects the employees and their contracts are ongoing and unchanged.

If, for reasons best known to himself, the businessman hasnt told the current owners that he will be keeping the staff on, do they then have to make them redundant? Should they still do a consultation? And can they claim back the redundancy payments from the businessman if he employs any of the staff within 6 months of their redundancy?

Does it make a difference if he is buying the unit and fixtures and fittings but not as a going concern (I assume to get a better price), hence why Wetherspoons are going on about redundancy?

Thanks!

OP posts:
atworknotworking · 10/06/2012 17:40

It depends how the sale is being carried out, is it the business, goodwill, assetts etc or just the unit (i presume a building) this area and TUPE is quite complicated, well I think it is Confused and I have found that what you would expect to happen ie TUPE or redundancy may well not be the case if the solicitors cover all eventualities, to answer the question properly you will need to know the ins and outs of the contract, is it you who is buying?

atworknotworking · 10/06/2012 17:43

Oh sorry just spotted the end bit doh! Yes it does make a difference, if I were buying assets only I would arrange pre-contract for legal seperation of previous employees/contracts so the prev employer would carry out procedures re redundancy. If I wanted to take one of the employees of the previous company on I would do so under a new contract / new company.

hermioneweasley · 10/06/2012 17:45

Sounds like TUPE would apply, probably in second scenario as well. There is a requirement for consultation by the transferer and any redundancy pay would be paid by the transferee, on the normal terms of the previous employer.

atworknotworking · 10/06/2012 17:48

Very important bit if it is you who is buying make sure you seperate totally employees / old company during due diligence BEFORE completion or it will come back and bite you in the arse later.

UK business forum webby is quite good for quick advice.

bogeyface · 10/06/2012 18:06

Its not me buying. The current owners are trying to include a clause thst says that if the new owner employs any of the current staff within six months of the sale then the new owner must reimburse the old owner for the redundancy costs.
I am wondering if that is stsndard practice as it will mean H will be out of a job.

OP posts:
atworknotworking · 10/06/2012 18:50

Ok from experience if the clause is agreed and included in the documents then it will be legally binding on both sides. So is your H getting redundancy anyway from the old employer?

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