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TUPE - ETO reasoning?

Hi there

My current place of work have offered me the business due to it suffering severe losses in the past six months. There is currently 6 members of staff on the books, 2 of these are directors and will automatically leave, 1 is on a placement so he will automatically leave in 3 months anyway. Which leaves 3 members of staff left. One is an engineer and one is a customer service rep. Oh and me.

I have had my accountant look at the figures and she says to stand any chance of succeeding i need to reduce the workforce by 1. The way i want the business to run will be different to its current scenario as there is a lot of wasted time and money occuring through bad processes. This would leave the customer service job position redundant. Also the business cannot afford to have a non earning member of staff on the books while it tries to turn things around.
Would this be classed as an ETO reason for dismissal? Any help or advice would be gladly appreciated. I have appointments at solictors/FSB over the next few weeks but just looking for a bit of guidance.
Credit card - £0 / Catalogue - £0 / No Debts!!! :j
04/01/10 Savng for a deposit - Target £10,000 / Currently £7,850

Comments

  • You need to reduce the headcount because there is no work for the customer services role. This, in the future, will be rolled into the one that you do. This is a fair and valid reason for redundancy. You will need to follow a fair process even with one redundancy or you could be required to pay additional compensation.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    They will have cost to shut it down

    How much are they paying you to take on this failing business?

    You need at least any termination costs (notice holidays and redundancies) covered.

    Is it part of a business of a complete one.

    If it is a transfer of equity to new owners does TUPE apply?



    Can the engineer and CS person do each other roles, might need apool.

    Who covers the positions currently for sick and holiday.


    If you go down to 2 people how do you grow the business?
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