04-01-2008  Back to news index

Buying a business? Employees come with the Territory - information provided courtesy of Whatley Weston & Fox Solicitors, Worcester.

When carrying out your analysis of a business you are considering purchasing you need to ensure that you are provided with details of all of employees.

Under the Transfer of Undertaking Regulations, the purchaser of the goodwill and assets of the business ("the undertaking") is obliged to take on the employees - essentially by reference to their existing terms and conditions of employment and in any event on terms no less favourable than they enjoyed prior to the sale of the business.

This is to ensure that jobs are protected - in other words, as the purchaser of the business, you cannot pick and choose which employees you wish to retain and which you wish to do without. The Transfer of Undertakings (Regulations) (TUPE) extends protection to all of the employees who are in a business which is to be sold (transferring employees).

It is therefore important, given the fact that these employees will transfer subject to their accrued employment rights and their existing terms and conditions of employment that you examine closely those terms and conditions (and any other benefits which the employees are entitled to such as free car parking or stakeholder pensions).

Back to news index