Redundancy

Mission193

Evening All

we have been told our workplace has been sold but no exchange of contracts have been completed yet.

we have been informed the new owners don’t want any of the employees as he is refurbishment the site before reopening 

Last week we was all put at risk of redundancy?

we had a phone call about it no indication on how long the consultation is for.

we have to nominate a employee rep.

any advice, can we be put at risk of redundancy when a deal has not even exchanged contracts?

tacpot12

As far as I'm aware, an employer can announce that there is a risk of redundancies without any certainty that redundancies will be necessary; many redundancies situations don't rely on any deal being agreed before the redundancies take place, so I doubt that there is anything prescribed about deals that will cause redundancies having been concluded. Good employers will only announce the risk of redundancies when it becomes clear that redundancies will be necessary, because they won't want to worry their workforce unnecessarily, or risk anyone giving notice prematurely. 

There is not much point trying to fight redundancies on technicalities. It is much better to help your employer wind up their business in an orderly fashion - I did this when this happened to me and got a job out of doing so!  You might suggest, as part of the consultation, that existing staff members are asked if they want (give permission) the employer to pass their details to the new owner, in case he wants to rehire anyone when the refurbishment is complete - assuming you haven't all got new jobs.

Thrugelmir

Mission193 said:

 can we be put at risk of redundancy when a deal has not even exchanged contracts?

Of course. Wouldn't be fair on the employees if material facts were withheld. Sounds as if the new owners are primarily interested in the premises. Leaving a rump of the existing business to be financially wound up by the current owners. Depending on the nature of the business may possibly be closed prior to a conclusion of the legalities. Much depends on the current financial position. This has been a difficult period for many companies.