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Posted: Wed Jan 23, 2008 7:28 pm
by Paul Coverdale
I'm in the process of buying a small business. I don't intend to keep on the present employees. The current owner is heavily implying that Because of this, It will be me that is liable to pay the current employees their redundancy money! I am convinced they are trying to shaft me, and it will be the current employers themselves that will be liable. Anyone up to speed on advice on this one?
Thanks!
Posted: Wed Jan 23, 2008 7:39 pm
by pbeck
No, they're correct, if you buy a business, the employees' contracts transfer to you under the protection of employment (TUPE) regulations.
Philip Beck -
www.freeivaadvice.co.uk
Licensed Insolvency Practitioner and IVA specialist
Posted: Wed Jan 23, 2008 10:25 pm
by MelanieGiles
Most purchasers of businesses faced with a TUPE liability, discount the full potential liability from their offered price. Not only will you need to pay them redundancy pay, but payment in lieu of wages, outstanding holiday pay and any arrears of wages.
In order to work out your potential exposure, you should ask for a full list of employees, dates of birth, start dates, rates of pay, and outstanding holidays. It could be quite a considerable sum.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp
See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp