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Redundancy / employment transfer

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  • Redundancy / employment transfer

    Hi all,

    The company I work for is going bust but they have set up a new company last year and will be running the business from this company instead.

    My question is regarding redundancy, I know the business hasn't told all the employees whats happening with the company and will transfer the employees to the new company and pay them from there (is this legal? especially as they haven't been told?)

    Regarding the redundancy that the employees would be entitled to (RP1 form) does this mean they are no longer entitled to it?

    Thank you for any help.

  • #2
    Re: Redundancy / employment transfer

    https://www.gov.uk/transfers-takeove...ent-businesses

    6. Insolvent businesses

    If the employer is insolvent and the business is being transferred or taken over by another company, the protection employees get is different from in a normal transfer.
    The employees are unlikely to be protected under TUPE if the business is closing down. However, if it’s being rescued and taken over or transferred, TUPE regulations will normally apply.
    If employees are owed money

    Employees have rights if their employer is insolvent and owes them money. Employees can claim for this whether they’re protected underTUPE or not.
    In a TUPE-protected transfer, the new employer must pay any amount left over after employees have been paid from the government’s National Insurance fund.
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