What happens when a business is sold

S_C

I'm curious to know what happens to redundancy payment if the employer you are working for decides to sell the business?

Does the new employer take on the exact same contract? Including the service an employee has given over X number of years?

If the new employer decides to have a reshuffle is there anyway they could avoid paying redundancy? I've heard some employers try to make people job difficult so forcing them to look for another job but curious to know what can/can't happen if a business is sold especially in not paying redundancy. Could the new employer renegotiate redundancy terms?

p00hsticks

From personal experience, albeit a few years back now, I think it depends on how exactly the business is sold / taken over. either employees of the old company are automatically employees of the new, or TUPE applies...

CKhalvashi

The first question is whether it's a limited company. If yes, your employer remains the same, as does your contract.

If not, or if one business is sold to another company, you will be protected via TUPE in principal.

If you need more information, I'll have time later to reply to any questions.

Thrugelmir

Sometimes it's just the assets that are bought. The liabilities remain with the old business.