When you buy or sell a business you effectively transfer the rights of employees within that transaction and you have a legal responsibility under TUPE – the acronym for the Transfer of Undertakings (Protection of Employment) Regulations.
Specifically employees have the legal right to transfer to the new employer on their existing terms and conditions of employment; this includes all existing employment rights and liabilities.
For all intents and purposes any contracts previously made with employees are also now made with you and therefore when taking on a new business with all these responsibilities it is essential you ensure your contract protects you from any liabilities that arose before you became the employer.
The good news is the seller, the outgoing employer is required to provide written details of not only all employee rights, but also liabilities that will transfer.
Here at Caversham Solicitors we can provide professional support to manage the crucial issues that TUPE can create for both the business owner selling and the new owner who is buying. Often it is part and parcel of handling the sale or purchase; however as employment law specialists we are often brought in specifically to handle the employee issues surrounding Business Transfers.
Whether you are buying or selling a business or better still are considering such a move, contact Caversham Solicitors today and discover how we can help you manage the process.