Who pays redundancy?

dandan431

Hi there

I work for a business that was bought out by a larger parent company 4 years ago. The parent company have now announced that they are planning to sell us off.
A likely option for the sale is that they will purely sell the Trademark rather than as an operating business (as we are not profitable). My question is; If this happens who pays redundancy...the business being sold/wound up (who I am employed by) or the parent company who are selling the Trademark?
I ask this as the redundancy terms of the parent company are far better than that of the business I employed by.

Hope this makes sense.

McKneff

You will be paid by the company you work for.

dandan431

McKneff wrote: »

You will be paid by the company you work for.

Thanks for the reply Mckneff.

What I am struggling with is that up to the Trademark sale we are a trading business and therefore I would not be made redundant at this stage.
Once the trademark sale goes through presumably the business would cease to exist...so how would they pay redundancy?
Ive had conflicting advise from various legal types but some are saying that as it is the parent company that is effectively making us redundant then they should offer the redundancy terms. Maybe just wishful thinking

McKneff

I think I would wait for more answers because Im certainly no expert.

When I was made redundant last year, the company closed and I was paid by them, even though there was a parent company but I think the payment would have been the same.
Im quite happy to be corrected.
For your sake I hope I'm wrong.

Debt_Free_Chick

dandan431 wrote: »

Thanks for the reply Mckneff.

What I am struggling with is that up to the Trademark sale we are a trading business and therefore I would not be made redundant at this stage.
Once the trademark sale goes through presumably the business would cease to exist...so how would they pay redundancy?

They won't instantly cease to exist. They may cease to trade, but the business would still be there. And they'd have funds from the sale to pay redundancy.

Ive had conflicting advise from various legal types but some are saying that as it is the parent company that is effectively making us redundant then they should offer the redundancy terms. Maybe just wishful thinking

The actions of the parent may well result in redundancy, but the process of redundancy can only be carried out by your employer. The terms of the redundancy will be those that apply under your contract/employer's policy.

getmore4less

There are likely to be enough for this to come under group consultation

The reps/union should be active in the consultation and be looking for ways to mitigate.

can new work be given tothe group under threat, can any be redeployed throught the ret of the group. can the business be made proffitable so does not need to be sold off.
also they should be fighting for the best terms for those effected, as well as payouts, help with cv's outplacement services, time off early release etc.