Business Transfers & Redundancies
Reorganisations, restructurings and redundancies are commonplace at present, whether they involve individual or collective redundancies. Along with business transfers, whether through sale or asset acquisitions falling under the TUPE Regulations, these give rise to the need to provide employees with prescribed information and consultation, whether with employees individually or collectively through elected representatives. Complying fully with these obligations can be difficult and complex, and the sanctions for failure to comply can lead to expensive claims, including for unfair dismissal (the maximum award for which is £95,585 (a compensatory award of £78,335) or 52 weeks' pay whichever is the lower per employee, subject to individual circumstances) and protective awards for failure to inform and consult correctly of up to 13 weeks' actual gross pay per employee affected, even if only one employee brings a claim.
We offer guidance though the statutory procedures and requirements, including in respect of the provision of information and appropriate consultation, and we prepare the necessary documentation with the aim of avoiding the creation of successful claims and to minimise disruption to the workforce at large.
Dismissals of protected employees made due to asset transfers are automatically unfair and employers are restricted from making changes to terms and conditions of employment for reasons linked to such transfers. We advise on the employment implications of asset and share transfers and on the liabilities relating to transferring or inherited employees. We can help negotiate warranties and indemnities to apportion risk in sale and purchase agreements and shareholders agreements.