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Potential Redundancy

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markyrp
markyrp Posts: 17 Forumite
Hi,
The owner of the company I work for is in the final stages of selling the company. The company is relatively small (approx 30 full time employees) and I believe the sale will come under TUPE legislation.
I am a department manager but I have received no information about the takeover from the current owner and he seems intent on avoiding speaking to any staff on the subject, even though the takeover is imminent (potentially within the next 2 weeks).
I have been told that I am not to comment to staff or customers about any proposed takeover yet any confidentially agreements appear to be worth nothing. I am absolutely fed up of customers questioning me about the takeover and also about the apparent proposed plans for the business post the takeover. The rumour mill is working overtime and I keep hearing rumours that I am going to be 'out of a job' or be made redundant and that certain previous employees will be returning post the takeover.
I have been researching the subject of TUPE and was hoping to seek some clarification on my interpretation of TUPE and redundancy legislation.
I have been employed by the company for over 10 years and if my understanding is correct, if I were to be made redundant post the takeover I would be entitled to 1 weeks notice for each year of employment, i.e. 10 weeks notice for 10 years employment. I also believe that in addition to payment for my notice period I would be entitled to 10 weeks redundancy pay (capped at £450 per week.)
One of the rumours going around is that the new owner is going to close my department for refurbishment which would take approximately 4 months and this could be used as an excuse/reason to justify my redundancy. I understand that in TUPE, an ETO reason can be a bit of a grey area but my question on this would be, if the projected refurbishment and temporary closure of my department would take approximately 16 weeks, could my redundancy on the grounds of temporary closure be deemed fair bearing in mind that it would cost more to make me redundant, 10 weeks notice and redundancy for 10 years at capped value, than to keep me in employment.
Another question relates to the duty to inform and consult. I believe that case law (Todd v Strain and ors) suggests that I should be informed about any 'measures' that are to be taken post the takeover and that I should be informed even if 'no measures' are envisaged. I believe that even minor changes such as a change in payroll date or holiday year would be considered 'measures' and would necessitate my being 'informed' under Tupe law. Because of the supposed ongoing confidentially agreement we have had no opportunity to discuss the potential repercussions of the takeover or elect any representatives. There is no trade union representation in the workplace.
The final question I have relates to redundancy itself. I am a department manager and my department is quite specific and I have a specific skill set. If the incoming owner tries to avoid making me redundant by offering me alternative employment within his organisation, would I be entitled to refuse if the alternative is completely different to my current role, yet still maintain my rights to redundancy?
I apologise if some of this sounds a bit vague but I do not wish to highlight my circumstances to others that may read this post and have ulterior motives. There are ex members of staff who are friendly with the proposed new owner and are rumoured to be (hovering like vultures) making a return post the takeover which would make my position untenable.
The whole situation is having an adverse affect on my health so any help would be very much appreciated.

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    If someone is buying the company then TUPE may not apply.

    What sort of company? limited partner etc. it can make a difference.

    if it is ltd and a purchase of the shares then the company still exists it is just a change of the people running the company
  • markyrp
    markyrp Posts: 17 Forumite
    I'm pretty sure that TUPE does apply in this case. My current employer has provided the incoming owner with employment liability information etc. prior to the takeover.
    I assume this would only be relevant if it was a TUPE transfer.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Normal due diligence when buying a company

    You need to get a idea of the liabilities and costs like outstanding holidays, salaries and all the employment contracts.

    potentially nothing to do with TUPE.
  • marlot
    marlot Posts: 4,966 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Sorry to hear of your situation - it does get stressful at times like this.

    TUPE may be a red herring. If the company is being bought, you may or may not change the company who employs you (it all comes down to how the deal is structured).

    If you're made redundant, it matters not whether it is the old company or the new which makes you redundant - you should have much the same rights. Which aren't very much, alas.
  • markyrp
    markyrp Posts: 17 Forumite
    OK. Thanks for getting back to me.
    Would I be correct in assuming that even if it is not a TUPE takeover, if the new owner does try and get me out the door, would I still be entitled to redundancy and a notice period?
    I believe it is a TUPE takeover though because the current owner has been consulting with his lawyer about whether or not he has to inform the employees. He was adamant that he didn't then now I hear that all of the employees are going to receive a letter from both the current owner and the incoming owner.
  • RobertoMoir
    RobertoMoir Posts: 3,458 Forumite
    Part of the Furniture Combo Breaker
    If the firm that employs you is being purchased, then your employment contract is presumably part of the assets and liabilities of the firm, rather than something that has to be TUPE'd over to a new employer as part of, for example, outsourcing a department's work.

    If the former is the case, your contract of employment with the company remains as it was, which would include your time in service for redundancy purposes, etc.
    If you don't stand for something, you'll fall for anything
  • markyrp
    markyrp Posts: 17 Forumite
    I have been told that the letter I am due to receive will contain confirmation that TUPE applies to this particular takeover.
    With this in mind, I refer back to the original post and would appreciate any advice on the questions and concerns I have.
    Thanks for the input so far.
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