After the sale of a business, employees are legally protected by the Transfer of Undertakings (Protection of Employment) Regulations (TUPE). As a general rule, the buyer must ensure that all employees receive the same terms and benefits as they had before the sale.
Due diligence conducted by an experienced solicitor will look thoroughly at the current Contracts of Employment, allowing the buyer to make an informed decision on whether or not to purchase and retain current employees.
Business Lawyers Direct will thoroughly look into
Any staff the buyer doesn’t wish to retain may have their employment terminated by the seller. This is where TUPE comes in to protect the employees during this process. Most commonly, a ‘compromise’ agreement is entered into, where employees accept the termination of employment, along with compensation for losing their rights as outlined in a contract.
The law relating to employees can be a complex part of any business purchase or sale. For peace of mind and comprehensive due diligence, conducted by experienced and specialist solicitors, contact Business Lawyers Direct. Call or use our online enquiry form.