Buying a Business - Advice

Discussion in 'Jobs (Discussion)' started by Gunner_REMF, Feb 10, 2010.

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  1. Not sure whether this is the right forum but here goes:

    If I buy a business and the present owner has made the only member of staff redundant 2 weeks prior to me trading in the same name, do I have a legal obligation to employ said redundee??

    Any HR Guru's??

  2. It depends on what you have purchased.

    If he has sold the company to you, then all liabilities and obligations pass onto you: which is why companies spend so much on auditors and consultants to do a 'due diligence' when they buy another company.

    If he has merely sold the name rights to you or a franchise, then none of his obligations will pass on to you.

    However, if he has sacked an employee previous to you buying the company, you will only have to give that person a job if said employee can prove that they were unjustly dismissed. If they are owed money (e.g. maternity leave, outstanding salaries, etc) then that debt has passed to you. If the "redundee" (to use your word) is in the process of working out their notice period, then you are obligated to obey the terms of their employment contract.

    You could always try to bully the person into leaving earlier or not coming back, but these days you would probably find yourself before an employment tribunal facing hideous legal costs. When my company has "let people go" and they have a significant notice period e.g. 12 months, then we negotiate with them to leave immediately with about 6-8 months cash up front. You are at liberty to tell the person not to come into work, but you are not able to withhold the money due to them as per their contract.
  3. Many thanks Bro I've PMd, hopefully for more info!

  4. udipur

    udipur LE Book Reviewer

    PM me if you want to talk it through as I advise on this a fair bit.
  5. Your not going into buisness selling those butt plugs are you..

    I'm good on this stuff also.. having been through the mill over the last year..
  6. 02fd32,

    You sell Butt plugs? 8O
  7. Why you wanna buy some..?
  8. Er... Thanks but no.
  9. Wordsmith

    Wordsmith LE Book Reviewer

    Saw this a bit late....

    If you buy a business, the existing employees have 'grandfather rights' - they retain their conditions of employment from the company you brought. You can improve those conditions of employment but you cannot (without their consent) change them for the worse.

    If the previous owner made the only employee redundant you're under no obligation to employ him, but (as has been said) you must respect the agreed redundancy terms.

    If they've been made redundant, then you cannot employ anyone in the same position for the next 6 months without first offering the redundant person their job back first. After 6 months you can offer the job to anyone you please.

    Probably too late now, but did the person you brought the business from tell you that he'd made someone redundant? If they didn't, then you're maybe incurring costs that he should have borne a share of....