buying a business with employees.

BigMama60

We are in the process of buying a business that currently employs 3 part time staff. 2 of these have limited hours and have worked there for round 7-8 years. The other has worked there for approx 20 years and is the one we would keep on. This is at the suggestion of the current owner. As she has worked there for so long we do not want to do anything wrong by her but dont know where we stand should we want to reduce her hours (23 per week at the moment). He says she is the most experienced but we think maybe its the length of service the others have done that maybe makes him suggest her as a redundancy calculator states it would cost approx 4300 to make her redundant.
If we take her on would we have to honour her 2o years of service? Could we take her one with a different contract, maybe with less hours?
We are a bit vague on employment law.

Owain_Moneysaver

If you are buying the business as a going concern then you inherit liability for the staff and must honour their contracts of employment and redundancy terms. This includes any terms which have been established over time, but may not be in the paper contract 20 years ago, such as 'always getting time off at Christmas' etc.

If the owner is selling the business assets without staff then he must make the staff redundant and pay the redundancy. You are then free to employ any staff on any terms you wish to offer.

heretolearn_2

Here is a very brief outline on TUPE and redundancy

http://www.unison.org.uk/acrobat/18747.pdf

The previous business owners can't make people redundant just to avoid their being transferred over under TUPE, according to the law. In practise they probably can, but could get in hot water if they don't manage the process cleverly.

DCFC79

If your a bit vague in employment law surely this should be something to read up on if your hopefully going to owners of a business.

BigMama60

DCFC79 wrote: »

If your a bit vague in employment law surely this should be something to read up on if your hopefully going to owners of a business.

That is exactly what we are doing and asking questions of people more knowledgeable than us on such matters.
Its very complicated and learning from someone who has that knowledge is invaluable.

DCFC79

BigMama60 wrote: »

That is exactly what we are doing and asking questions of people more knowledgeable than us on such matters.
Its very complicated and learning from someone who has that knowledge is invaluable.

The new gov.uk site has stuff on employing people.

BigMama60

DCFC79 wrote: »

The new gov.uk site has stuff on employing people.

Yes it does but then when you try to go to the relevant page it says that page is no longer there...laugh as its a new site!! Thats the government for you :rotfl::rotfl:

Annisele

This is something that could cost you a lot of money if you get wrong - so I'd say it's something to ask your professional (paid-for) advisers rather than a bunch of randoms on the internet.

You can always change contracts by agreement, but you can't always just impose changes.

Are you wanting to let the other staff go because you'll be doing their work?

BigMama60

The current owner is sorting them out. He hasnt said how but we have a meeting with him next week so it is wise to ask.

colino

Please don't let the tail wag the dog, you are paying for the business (the current owner wants out for a reason) so work out what you want and have the changes made during his watch.

Takeaway_Addict

Agree with Colino....do not trust the owner to have your interests at heart, you need to be scrutinising all costs that are obvious and potential (ie redundancies etc) and this should reflect your price in buying.

Get proper paid advice IMO, may spend a a couple of thousand on it but could save you alot more