Buying or Selling a Business with TUPE
If you are involved in selling a business or buying a business (not involving the selling of shares), then it is most likely you will have to deal with the requirements of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE).
When does TUPE apply?
TUPE regulations automatically apply where there is a transfer or sale of a business or the transfer of a service provision (this normally means an operations contract of some sort, for example: cleaning).
Because TUPE applies automatically it is essential the requirements are observed. The regulations require the transferor and transferee to cooperate in consulting and informing the employees about certain matters which might affect their employment; particularly regarding social, legal and economic implications. Pensions are also a very important part of these arrangements.
Employee claims under TUPE
If a business fails to comply with these requirements the tribunal can award up to 13 weeks’ pay for each employee who has not been properly dealt with.
TUPE employee liability
The new employer of the transferring employees will inherit all employee liabilities from the old employer. So for instance if there are outstanding wages holiday pay or commission, the new employer becomes responsible for paying those amounts of money. Proper due diligence should reveal these issues and any transferee will then take an indemnity or make an arrangement to cover off this liability.
Where to find help with TUPE
When done properly, the TUPE process can be both advantageous and simple for all parties, but only if all requirements are properly observed.
For advice on whether your TUPE process is compliant with the correct business transfer regulations, contact our team of specialist employment lawyers, who are experts in TUPE from both a buyer’s and seller’s perspectives.
Speak to our employment law solicitors
Our team are experts in employment and business law and can ensure you maintain productive, compliant and efficient throughout the whole process.
For small and large businesses, there is the option of subscription based pricing for unlimited telephone advice throughout the year. Ask us about this for more information. To find out more contact our team today. Bray and Bray has three main offices in Leicestershire, contact us to discuss an enquiry or a case you have or feel free to pop in and see us at your local office by clicking on the links below;
Leicester call us on 0116 254 8871.
Hinckley call us on 01455 639 900.
Market Harborough call us on 01858 467 181.