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Selling a Business – how Lawson-West, Solicitors, can help

Whenever a business is bought, the parties must comply with the Transfer of Undertakings (Protection of Employment) Regulations 2006, known as TUPE Regulations. These Regulations are intended to protect employees. They apply to an employer whether they have hundreds of employees or just a few. They apply equally to public or private sector undertakings.

Here are some of the major points if you are an employer buying a business.

1. The new employer steps into the shoes of the previous employer. This means the new employer must take on the existing employees on their existing contracts of employment, as if their contracts of employment had originally been made with the new employer.
2. The new employer cannot ask the previous employer to dismiss any employee before buying. Any employee dismissed (even by redundancy) because of the transfer of business is automatically deemed to be unfairly dismissed and there is now no limit to the amount of damages that can be awarded.
3. The new employer cannot change or dismiss an employee because of the transfer, even after you have bought the business, unless there is an economic, technical or organisational reason under the TUPE Regulations.
4. The new employer may be required to make pension provisions for the employees you take over.

Lawson-West act for many people buying businesses and Lawson-West work closely with clients to make sure that we cover as many aspects as possible in the legal documents. Because of the complexity and possible cost if it goes wrong, you should always take specialist legal advice and make sure your solicitor knows all the facts so they than can advise and protect you properly. For more details or a copy of the TUPE Regulations, contact Lara Scott or Ashley Hunt on 0116 212 1000 now. Lawson-West also offer advice on TUPE Regulations for Selling a Business