Owner dies, whathappens? Advice please!

[Jason_Lee]

Hi all.

I work for a limited company in marketing. The owner has died. The company is only small. What will happen to the staff? Where do we stand? Who will take over the business etc.

Please advise. I have had alot of help on here and would like help here.

Thanks alot.

 

[Urban Space]

Goes to the second in command I think, or the government. I'm sure they'll soon have their hands on it!

Liam

 

[clairemackaness]

Did the owner have a will? The business may have been left to a family member

 

[Coding Monkey]

Did the owner have a will? The business may have been left to a family member

Or to some random guy working in marketing :roll:

 

[Urban Space]

Or the cat's home

Liam

 

[bwglaw]

Seriously, is there any other Directors/Shareholders?

If there was just one Director/Shareholder then the business will go to the estate. The personal representative, i.e. spouse, will decide what to do with the business, either sell as a going concern or liquidate the company.

 

[Jason_Lee]

And what would happen if the business was liquidated? Would i get any compensation? What would happen to the staff?

Jason

 

[bwglaw]

If a business is liquidated because the only shareholder has died intestate i.e. without a will then the staff will be made redundant. Employment legislation will apply in these circumstances and if you suffer any loss of wages or redundancy you will have to make a claim from the Insolvency Service Redundancy Payment Office/National Insurance Fund.

It is not 'compensation' as such but a recovery of losses. Before worrying too much you need to find out what your employer's intentions are but I am sure they will inform you all shortly.

Do you actually know if there are any other Directors/Shareholders? The spouse of the business owner may actually be a shareholder and can appoint a Director to run the business, or sell it and new management will come in.

 

[bwglaw]

Here is a useful link:

Redundancy and Insolvency for Employees (PDF)

If you email me more details at [email protected] I can give more accurate advice

 

[Jason_Lee]

Thanks alot for your help. I dont need exact details but thanks for your help. I just wanted an idea of what the process would be. You have been very helpful!

 

[bwglaw]

OK

Additonally, if you are under 20 or have less than 2 years continuous service, you won't be entitled to redundancy payment.

 

[Jason_Lee]

I have been working for them for 1 year as an Apprentice. Does that not entitle me to anything?

 

[bwglaw]

I have been working for them for 1 year as an Apprentice. Does that not entitle me to anything?

You do not qualify for redundancy payment. Your contract with them will become 'frustrated'. This means the contract cannot be performed because the employer is (if the case may be) going into liquidation and therefore staff are redundant.

You will be entitled to the minimum notice contained within your contract of employment if you have one. If you do not have a written contract or a statement of terms and conditions then the statutory notice will apply, which in your case is 1 week. The employer can pay this notice in lieu along with any other entitlements i.e. unspent annual leave.

The above information may be ahead of the situation because a redundancy situation does not always arise but a change of employer/ownership and therefore your rights will come under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE).

Additionally, with your 1 year continuous service you are entitled not to be unfairly dismissed (closure of business is a fair reason)