smallbusiness.co.uk: Helping your business think big

Email a Friend

If a company is sold, do new owners have to employ the existing staff on the same terms as their original contract? 

When a company is sold, the employees of the old company are transferred to the the new company and are protected under TUPE – the Transfer of Undertakings (Protection of Employment) Regulations 2006.
 
As a result of the transfer of undertaking an employee’s terms and conditions of employment are protected, unless there is a genuine economical, technical or organisational reason that applies. An employee under TUPE will transfer to the new company on the same terms and conditions of employment eg same salary, same benefits. They will also retain their period of continuous employment, that is their start date of employment will be the date they began their original employment with the old company (unless they were also transferred to that company which means their start date would be earlier).
 
There are many technical issues surrounding TUPE and any changes being considered to terms and conditions should be discussed with professionals with knowledge on this subject.  There may be a lawful reason to vary a contract if it is an ETO, but you do not want to put yourself at risk of claims to an employment tribunal.
 

See also: Tax break set to stay

Previous article

How to approach redundancies

Next article

Interim Management: What You Need to Know

Post a comment

3 comments

Julie Thorpe

If the new owners do not keep the existing staff on, do they have to make them redundant?

Phyl Ee

I am buying a company and there are 2 existing staff members that I have to employ under TUPE. The one staff member is terrible at her job and has chased customers away. How can i get over this as i do not want her on my team.

Bismack Gham Lovsah

MY company is sold ,and we are still working with a new owner,but we do not kwon have agreement will be .but our new owner always talk of visa and contrat change.please,i wish to kown wheather that can be done without salary and other benefits change that is increst salary .thanks

Related

News | Outlook

Finding a business for sale

News | Management

How to win customers online and make them stay

News | Management

Getting the right staff

News | Management

How to make your first sale

Small Business Offers

  • Compare business insurance quotes

    Tailor your policy, compare quotes and buy in minutes! Up to 50% No Claims Discount. Compare quotes or call 0845-0723340 today.

  • Need Business Credit?

    Take control of your business credit score with My Business Profile. See what the lenders see about your business, sign up today and Get the First Month FREE*.

  • Compare Business Phones

    An instant business mobile phone comparison website which compares the entire market, all the networks and all devices on one site. Save money instantly.

  • Content Choices from SmallBusiness

    Receive regular guides, whitepapers and advice to help you start and run a successful business.

More from Small Business

Starting a Business
Addressing your marketing collateral for trade shows

Addressing your marketing collateral for trade shows

Here, we look at why it is necessary to make your exhibition stall stand out...  

Financing a Business
Get your books in order now and avoid another self-assessment nightmare

Get your books in order now and avoid another self-assessment nightmare

Emily Coltman gives her top tips for getting your books in order now, so you...  

News
Two fifths of Britons seek to start a business 

Two fifths of Britons seek to start a business 

Some 39 per cent of would-be entrepreneurs say they think every day about starting their...  

Blog
Election 2015: The outlook for SMEs

Election 2015: The outlook for SMEs

Richard Healy discusses what entrepreneurs really want to hear from the government in the coming...