Failure to consult - business being sold

Mudd14

Does the employer have any duty to consult in relation to selling the business. It is likely to end in all of us being redundant.

Jarndyce

Googlewhacker wrote: »

In short No, its their business and they can do what they like with it, they are not the one making you redundant it would be the new owners.

One caveat to that would be that if the sale is one to which TUPE applies then the employer has a duty to inform employees of the date of the transfer, the legal and economic consequences etc etc. Whether or not TUPE applies is a matter of the facts, not whether the parties collude to avoid a transfer of staff.

We would however need to know more about the nature of the business and the sale in order to know whether any redundancies are likely to be automatically unfair under TUPE.

Jarndyce

Googlewhacker wrote: »

Yeah but as far as the current employer is concerned he is selling the business to the new employer with current staff. Surely the current employer can't be expected to second guess the actions of the new employer?

No but if TUPE applies then the current employer has obligations to keep staff informed prior to the transfer.

We don't know the basis of the OP's prediction that they will be made redundant - it is quite common for example for parties in sales to collude so that the first employer makes staff redundant before the sale, reducing liabilities for the new employer. In which case the current employer would be liable.

The OP did not say that the current employer was "selling the business to the new employer with current staff" - that is just your assumption, for which there is no basis.

InsideInsurance

Jarndyce wrote: »

No but if TUPE applies then the current employer has obligations to keep staff informed prior to the transfer.

But there is also a difference between informing and consulting. Even if it is inside of TUPE the employer need only keep them informed and is under no obligation to consult them

Mudd14

I dont believe head office (administration) staff would TUPE. The sale (as far as gossip tells me) would be the actual operational trading sites and those staff, they are selling the contracts that we have (cleaning company). So redundancy would apply to head office staff on a diminished work load not a TUPE situation as far as I can read into it.

Not sure if that helps?

Mudd14

Anyone else have a view on this?

SarEl

Yes. It's really hard to give advice based on "reading into things" - you may as well send us tea leaves:)

It may seem like an overly simplistic answer - but has anyone thought of asking the employer? Because that seems like a pretty good starting point. Whether or not the head office staff ought to TUPE, or whether there are prospective lawful redundancies in the offing, gossip is the most unrelaible form of communication, often because, as in this case, the main party is missing. At least that way you may have some relaible information to get advice on.

Mudd14

The question has been asked by a few people and we are told that we are re financing. Yet there are documents showing "when the sale is completed" and so on.

Sorry to be vague SarEl but i am not sure what exactly you need to know to base advice on? Is there anything in particular?

SarEl

Seriously? Facts are very useful

A sale is a form of refinancing. We, and you, are speculating with very few facts. So the only facts we have are that they are selling contracts - and they do not have to consult you about doing that. Which answers your first question but doesn't really get you any further forward, I'm afraid. I think you have little choice but to await some facts. Then come back.

heretolearn_2

I don't think companies have to keep you informed during the process - pretty much everything about the sale of a business is confidential and if it's only going through right now, it may happen, it may not happen, etc. The only thing you need to know is once it's definite, what is going to happen to the employees. I've worked at companies twice when they were sold and no one had an inkling until there was a big announcement about it that we were now owned by someone else!

Jarndyce

heretolearn wrote: »

I don't think companies have to keep you informed during the process - pretty much everything about the sale of a business is confidential and if it's only going through right now, it may happen, it may not happen, etc. The only thing you need to know is once it's definite, what is going to happen to the employees. I've worked at companies twice when they were sold and no one had an inkling until there was a big announcement about it that we were now owned by someone else!

Once a TUPE transfer is proposed then there is a legal requirement to inform staff of:

• the fact and date of the transfer
• the legal economic and social implications of the transfer for any affected employees
• envisaged measures by either employer or confirmation that no measures are envisaged

There is also a duty to consult with a view to seeking agreement on any proposed changes to working conditions.