Selling business, purchaser doesn't want the staff.

[The Sisko]

I'm selling my business, and it looks like it's going to be sold as a "going concern", via an asset sale. We're working out the exact details now.

However, neither of us want the staff after we complete the transaction, but from my limited understanding, staff are protected from dismissal when a business is being sold, and cannot be dismissed as a result of the business transferring.

The new buyers don't want anything to do with the previous business. They have said that they will be pretty much closing down that business and doing a new business, and the business partners will be doing the staffing.

 

[fisicx]

Read this:

https://www.gov.uk/transfers-takeovers

If they don't want the staff they have to dismiss them or make them redundant.

 

[Roxanne Massey]

They would need to transfer (TUPE) as a part of the business sale, it is not just a case of dismissing them due to the sale, this would not be a valid reason.
If they are not needed then the new company would be able to made them redundant as a part of a process that includes all it's employees, this would need to be due to economic, organisational or technical reasons.

 

[Newchodge]

I'm selling my business, and it looks like it's going to be sold as a "going concern", via an asset sale. We're working out the exact details now.

However, neither of us want the staff after we complete the transaction, but from my limited understanding, staff are protected from dismissal when a business is being sold, and cannot be dismissed as a result of the business transferring.

The new buyers don't want anything to do with the previous business. They have said that they will be pretty much closing down that business and doing a new business, and the business partners will be doing the staffing.

Make sure that you provide the new employers with all information about all your old and their new staff. That is your responsibility, as is consulting with your staff over their upcoming transfer. If the new employers decide to dismiss them, that is their business, but do not do it for them.

 

[Clinton]

They have said that they will be pretty much closing down that business and doing a new business...

They can say whatever they want, and I can understand their logic, but they are bound by TUPE. Read my notes here on the pros and cons of an asset sale.

TL;DR: Buyers of business assets, rather than shares, are in a highly advantageous position in that they are getting a clean break ie. no past liabilities from the old business can come out of the woodwork and bite them in the ass. But there are downsides as well, and TUPE is one of them.

Staff, what to do with them and who is going to pay redundancy, is normally a key part of the negotiations. If you had professional assistance through this your advisers should have settled the staff issue when negotiating the deal. But, like many business owners, you may be winging it without professional assistance!

At least with the legals make sure you get a good lawyer to draw up the contractual paperwork! Pay well, get the best.