Buying a business without the staff?

Discussion in 'Employment & HR' started by owdafox, Mar 6, 2018.

  1. owdafox

    owdafox UKBF Newcomer Free Member

    1 0
    Hi all,

    Looking for some HR / Legal advise...
    I am thinking of buying an e-commerce business that is being marketed as a going concern but relocatable. The company currently employees 4 people, i would imagine they have been there for sometime, maybe 5 years or more. however, if we do proceed to purchase, we would be looking to relocate the business some 150 miles from its current location. In our initial assessment, the business is well overmanned and only requires 2 people at most.

    What is the legal position on this? do we have to transfer the employees as part of the sale or can we build it in to the purchase agreement that we don't transfer employees?
    Can we request the current owner make them redundant/lay them off with a months notice before the sale is complete?

    The long a short of it is, we want to buy the business, move its location and not have to worry about the current employees... a little harsh i know, but this is business after all.
     
    Posted: Mar 6, 2018 By: owdafox Member since: Mar 6, 2018
    #1
  2. Scalloway

    Scalloway UKBF Legend Free Member

    13,679 2,942
    Posted: Mar 6, 2018 By: Scalloway Member since: Jun 6, 2010
    #2
  3. Mr D

    Mr D UKBF Legend Free Member

    9,048 915
    Would TUPE apply?

    Would you be willing to pay the current owner more money to do what you want them to do? After all its going to cost money.
     
    Posted: Mar 6, 2018 By: Mr D Member since: Feb 12, 2017
    #3
  4. Newchodge

    Newchodge UKBF Big Shot Free Member

    9,687 2,448
    TUPE probably applies. if the current owner makes the staff redundant before you take over they can sue you for unfair dismissal.

    You continue the negotiations with the current owner. Ask for full employee disclosure under TUPE, consult with the employees and explain that they will transfer with the business and that the business will relocate to X. Ask if anyone wishes to move to X. If they don't, consult over redundancy.

    Ensure that you have a waiver in the sales contract that the outgoing owner will be responsible for the costs of redundancy and any costs of unfair dismissal claims arising.
     
    Posted: Mar 6, 2018 By: Newchodge Member since: Nov 8, 2012
    #4