Business Purchase and TUPE

[Rich20]

Hi All

I will be purchasing a business (asset purchase) and have obligations to TUPE the existing staff. As soon as we have been assigned the lease and paid for the business we intend on closing for 4 weeks, in order to refurbish and re-model. Under TUPE law are we obliged to pay all the staff during this initial month of closure?

Any help much appreciated.

Thanks

Rich

 

[WaveJumper]

As always full details on TUPE here:

TUPE transfers | Acas

When a business or service provider changes. Transfer of Undertakings (Protection of Employment).

www.acas.org.uk

My understanding would be its all about the employment contract, although if your shutting down the business for a time and your staff cannot work at an alternative location or found something else to do its hardly their fault and should not be penalised financially in my book.

@Newchodge will be the best member to advise on this one

 

[Chris Ashdown]

No just let them starve after all they are most likely on the minimum wage so not worth anything, just hire some new ones

 

[Rich20]

No just let them starve after all they are most likely on the minimum wage so not worth anything, just hire some new ones

always a smart arse

 

[Rich20]

As always full details on TUPE here:

TUPE transfers | Acas

When a business or service provider changes. Transfer of Undertakings (Protection of Employment).

www.acas.org.uk

My understanding would be its all about the employment contract, although if your shutting down the business for a time and your staff cannot work at an alternative location or found something else to do its hardly their fault and should not be penalised financially in my book.

@Newchodge will be the best member to advise on this one

The existing staff don't have a contract, they are not employees either just workers. That said we wanted to understand what the law is in this regard. In essence we agree, ethically this wouldn't be the right thing to do.

 

[WaveJumper]

Even workers are entitled to have terms of employment I believe this was the law for those employed since April 2020 maybe worth checking on the ACAS site just to make sure you got all bases covered

 

[Rich20]

Even workers are entitled to have terms of employment I believe this was the law for those employed since April 2020 maybe worth checking on the ACAS site just to make sure you got all bases covered

Thanks, will check the ACAS site again, however having looked at that before I couldn't fnd anything that covered this.

 

[WaveJumper]

Thanks, will check the ACAS site again, however having looked at that before I couldn't fnd anything that covered this.

Should be on this page

Types of employment status - Employment status - Acas

How to work out employment status and how it affects employment rights.

www.acas.org.uk

 

[IanSuth]

There is not really any such thing as "not an employee, just a worker"

Did you ask the current owner for all their employment contracts and records. @Newchodge will be able to say what the default contract is if they havent been issued ones but you 100% need to know how long each has worked for the company as it affects their redundancy rights etc and those carry over the change of ownership.

Whoever is dealing with the legal side of the sale should be on top of all this and getting the info as 4 people can be a large financial liability if they have longstanding employment

 

[Newchodge]

Unless there is a clause in the emplyment contract allowing short term layoff, they should continue to receive their contractual entitlement if they are ready, willing and able to work but you don't offer them any work to do. If this is an asset purchase TUPE would not, necessarily apply.

EDIT: What do you mean 'they are not employees .. just workers'? Everyone working for someone else has a contract, it may not be in writing.