When buying or selling a business or where there is a service provision change (for example, activities are to be carried on by a different contractor or brought back in house), many businesses do not fully appreciate or consider the myriad of employment implications that arise. The employment law issues in such situations are complex and require expert advise and assistance, which is where we can help.
In most cases, employment law requires the new owner or contractor to continue to employ the employees of the other business. In addition, the business takeover is limited in the changes it can make to the terms and conditions of employment. Employers have obligations to inform and, in many cases, consult with employees prior to any transfer, and certain information about the employees must also be provided prior to the transfer and within the statutory time limits. If an employer disregards or fails to apply the TUPE provisions, a Tribunal claim may result.
With the above in mind, it is vital that all parties enter the contract fully aware of the employment liabilities that the new business will take on and the effect on the outgoing business which may lose employees. A failure to do so can severely damage the financial security of the company and adversely affect the economic viability of the business deal.
Why Joelson?
Our specialist employment law team has considerable experience in advising businesses on the employment law implications of such business transactions, including in the context of service provision changes, and business sales and acquisitions.
Our solicitors work closely with our clients to help them to identify and address and avoid any pitfalls when dealing with business transactions, including:
Our TUPE & Outsourcing team also understands the post transfer issues faced by employers, including customer pressure dismissals and dealing with problematic transferred benefits.
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