Sold company and redundancy rights

[Toddius]

Hi guys

Happy new year.

Im not sure if anyone can help but iv just found out the company I work for (installing and maintaining cctv/alarms )has sold all our Maintenance contracts and work to a rival company. As they have only sold the contracts iv been told tupe rules do not apply.

The other company has offered all existing employees interviews to work with them but have said they have no obligation to offer us jobs no this is only a good will gesture. They are also located a lot further away than what I travel currently ,work longer hours and allow less holiday days.

Would I be entitled to redundancy and also should there be a minimum term of notice for redundancy. I have worked here for 13 years.

My main concern is that my boss is going to try and find a way to avoid paying anyone what they are owed.

Thanks in advance

[ULA]

Re: Sold company and redundancy rights

Are you solely employed on the maintenance contracts that have now been taken over by the rival company? Is the company you are working for continuing in business?

My thoughts on this are based around the possibility of it being a T

ransfer of Undertakings (Protection of Employment) Regulations (TUPE) situation in which case there is an obligation set out to consult with affected staff. If TUPE did apply in these circumstances then you would automatically become an

employees of the company who has taken over the contracts at the point of they are transferred. You would transfer with continuous service from your old employer, and should continue to enjoy the same terms and conditions of employment with the new employer.

If as a consequence of the transfer there is to be a redundancy situation then this again would need to follow a redundancy process including consultation and the right to redundancy payments.

[Toddius]

Re: Sold company and redundancy rights

Hi. Thanks for the reply.

It was service and maintenance contracts that were sold ,My main role is installation of new jobs. This side of things will be shutting down shortly and the company will cease to exist. We have been instructed to finish existing installs which is about 4 weeks work but could be longer as a few more may be coming in but ultimately it will be closing in the very near future.

We have as of yet had no official notice of the companies intent to close. This was just sprung upon us between Christmas and New Years which was awful timing.

3 guys from the servicing side have taken jobs with the other company so they are now unable to claim redundancy.

I have been offered a job with the other company on their terms which is no good for me because they are a extra hour commute, Longer hours,Less break time and would cost me at least £10 more per day on transport.
I will be hanging on until the company closes so I can claim the redundancy. I'm stuck in limbo. Unsure when I will run out of work and unable to apply for a new job because I can't give them a definitive end date for my current employment.

what did you mean when you said consultation about the redundancy process.

My biggest concern is that they will somehow find a way to not pay us anything. They have already done a few underhand things to other employees in the company.

Thanks again for for your help

[ULA]

Re: Sold company and redundancy rights

Thank you for the clarification on the contracts that have been sold on to the new company. If your role is mainly installation rather than service and maintenance then your situation is one of redundancy rather than TUPE in my view.

In which case if the company will cease trading once it has fulfilled all its installation commitment then a redundancy consultation process should have been started/or about to be started with those installation staff affected by the closure. If there are fewer than 20 employees potentially being made redundant due to the closure, then the company needs to consult with you on an individual basis.

I appreciate this may seem all a little bit academic since the business is closing and part of the consultation process is to discuss possible alternatives to redundancy and reasons why you have been selected. However there still needs to be a consultation with you based on providing details on anticipated closure date, redundancy payments due and provision of time off to attend interviews. In addition since you have been with the company for more than 12 years you are due a statutory notice period of 12 weeks before your employment ends.