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Query re TUPE vs new contract

Hi all, hoping someone may be able to advise.
Our company is currently in administration.
We have been told that some of us will be 'taken over' by the administrators but the company is thinking of new contracts rather than a TUPE which would mean we would all lose our long service benefits - does anyone know if this is actually legal? I would have thought they would have to make us redundant first before offering a new contract but am no expert.
Thanks

Comments

  • Dox
    Dox Posts: 3,116 Forumite
    1,000 Posts Third Anniversary Name Dropper
    xanti said:
    Hi all, hoping someone may be able to advise.
    Our company is currently in administration.
    We have been told that some of us will be 'taken over' by the administrators but the company is thinking of new contracts rather than a TUPE which would mean we would all lose our long service benefits - does anyone know if this is actually legal? I would have thought they would have to make us redundant first before offering a new contract but am no expert.
    Thanks
    Which company is thinking of new contracts? 
  • xanti
    xanti Posts: 11 Forumite
    Tenth Anniversary First Post Combo Breaker
    Dox said:
    xanti said:
    Hi all, hoping someone may be able to advise.
    Our company is currently in administration.
    We have been told that some of us will be 'taken over' by the administrators but the company is thinking of new contracts rather than a TUPE which would mean we would all lose our long service benefits - does anyone know if this is actually legal? I would have thought they would have to make us redundant first before offering a new contract but am no expert.
    Thanks
    Which company is thinking of new contracts? 
    Thanks for the response - it's the new owners of the company I assume - they arent telling us much currently.
  • steampowered
    steampowered Posts: 6,176 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    It sounds like this is a pre-pack administration, which means that the new owners will have set up a new company, and the new company will have purchased the business run by your employer from the administrators of your employer.

    TUPE does apply in that situation but with modifications - amendments to employment contracts are required to aid survival of the business. There is a good guide at https://www.begbies-traynorgroup.com/articles/rescue-options/how-does-tupe-apply-in-an-administration-process.
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