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Whenever a business is sold, the parties must comply with the Transfer of Undertakings (Protection of Employment) Regulations 2006, known as the TUPE Regulations.

Here are some of the major points if you are selling a business

1. Employees must be consulted.
Where employees are represented by a Trade Union, recognised for collective bargaining purposes, an authorised official of that union must be informed and consulted.
3. Where there is no Trade Union, the employer must inform and consult other employee representatives, who could be new representatives elected for the purpose. There are rules that apply where new representatives are specially elected for the purpose. It is strongly recommended that employers seek specialist legal advice to avoid potential employment tribunal claims.
4. The employer must tell the employee representatives that the transfer is going to take place, approximately when and why along with information about any actions (such as a reorganisation) in connection with the transfer. Any such actions must be subject to consultation and be notified to give adequate time for consultation.

Lawson-West act for many people selling 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 the TUPE Regulations for Buying a Business.