Hairdressers is going into Liquidation but they are offering a new job so no redundancy ?

mesh2853

Hi , My partner has worked at the same hairdressers for over 20 years with various owners but her contract of employment has always carried over for her years of service. They have been told they are going into liquidation but will start up as a new company with the same customers and the same person running it , just in a different name they are saying because they are starting back up and offering her a job that she can’t have any redundancy money and not entitled to it. But her new contract will start a fresh and she will just lose her 20 year service . Is that correct ? Obviously she is pleased to still have a job with the same customers but it just doesn’t sit right with me.

DullGreyGuy

Presumably they are proposing to TUPE her from one to the other and so her continuous service would continue?

Is the old company solvent?

mesh2853

Pretty sure the old company isn’t solvent as they have lots of debts. We haven’t seen any paperwork yet and TUPE hasn’t been mentioned 

400ixl

If they are doing a transfer of insolvent business then they do not have to make people redundant. They also have more freedom on terms and conditions (salary, hours etc) than a straight Tupe as long as the changes can be proven to be require the business to be run as a solvent business. This would still be a continuation of service and no redundancy applicable.

If the business goes into Liquidation then the employees are made redundant and claim off of the Redundancy Payment Services rather than the employer. If the business then re-starts it is not as a transfer but a new business with no employee's.

At least that is my understanding.

diystarter7

mesh2853 said:

Pretty sure the old company isn’t solvent as they have lots of debts. We haven’t seen any paperwork yet and TUPE hasn’t been mentioned 

Ditto.....

Scorpio33

Yep, you either have TUPE and so continuous service or you get redundancy (and no job). Redundancy would come from the governments scheme I would imagine as the old co is insolvent.

penners324

A good old phoenix to evade lots of old debt.

A quiet word to a few suppliers and the landlord might stuff those plans 😁

stevescarratt

Hi all my wife is in same problem her firm launched a new business venture which has failed but as they were linked has caused the original business problems they are liquidating the other company and declaring insolvency on hers and making her redundant,fair enough. But then they are saying that they plan to restart under a different name and wish to employ her again maybe even the next day! Is this allowed would she get redundancy money? 16 years ! Would be a nice bonus but not sure if she would get any in this position.Not bothered about continuity of employment as she retires in 18 months but would like to stay employed till then ,just wondering where we sit lol