The Transfer of Undertaking (Protection of Employment) Regulations mean that when you take over a business you inherit the staff too. And that can include staff unfairly dismissed before you took over! Make sure the cost is borne by the seller and that the Sale and Purchase Agreement covers this.

When selling a business, say nothing to the contrary and the purchaser has to pick up the tab for any arrears of holiday pay, for example. (This is sometimes a source of friction between the new employer and the staff if they are not getting their full holiday pay etc.) The new employer is bound by the existing terms and conditions, and although he will often seek to change them this is strictly not a matter the seller need be concerned about. On the other hand, many employers feel an obligation to their long serving staff and want to ensure all the staff entitlements are up to date before the handover.

After one month's service, an employee is entitled to at least one week's notice. After 2 years, that goes up to 2 weeks with a further week's notice for each complete year up to 12 weeks at 12 years service. These are the statutory minimum notice periods that apply unless the employment contract gives a longer period.

After one year (it used to be two years) the employee can complain if he or she is unfairly dismissed. This can be a minefield. The criteria for selection must be transparent and scrupulously fair (i.e., last in, first out) but even then you are probably well advised to employ a legal minesweeper.

After two years service employees age over 18 years are entitled to redundancy pay. This varies according to age and length of service, and there are tables you can consult find the correct amount. As long as you have fewer than 20 employees, at least there is no requirement to notify the redundancies or to consult with a trade union or employees' representatives.

[CA-online] [About CA-online] [Online Accounting] [Employing Staff] [The right person] [The contract] [Rights and duties] [Working hours] [Pay and tax] [Dismissals] [Bureau payroll] [Employment News]