Employee liabilities are a paramount concern when restructuring an organisation or acquiring a business. During such changes, we advise across multiple sectors on employment issues, ensuring that employee obligations are dealt with efficiently.
When there is a change of ownership, the employees of a business are commonly protected under the Transfer of Undertakings (Protection of Employment) regulations 2006 (TUPE). This applies to mergers, acquisitions, outsourcing, and bringing services in-house.
Failure to fully comply with TUPE can result in substantial penalties, statutory offences and employee claims. Businesses therefore need to manage employee transfers with care.
in preparation for a merger or acquisition, we work with clients to ensure that all necessary information is provided to employees and their representatives, and that correct procedures are followed in any necessary consultation.
Likewise, in taking on employees, we can put together details of any proposed changes for their previous employer. We also advise on the liabilities including any associated costs, such as redundancy payments.
When taking on a new enterprise, there is a legal duty to minimise or prevent redundancies wherever possible. We advise clients who believe redundancies are necessary, that there needs to be a fair reason to reduce the risk of potential unfair dismissal claims.
Collective consultation is required If there are 20 or more affected employees. We guide clients through the steps of this mandatory legal process: advising former employers, giving the correct notice, informing and consulting, creating a fair selection pool of potential candidates, applying selection criteria, notifying employees and calculating redundancy pay.