If the business you are working for, or part of that business is changing ownership then you the employee could have protected employment rights. You could also have rights if your current or prospective employer wants to change your employment contract because of the transfer.
Business transfers
If you are involved in a business transfer or takeover that is protected under the Transfer of Undertakings (Protection of Employment) Regulations, known as ‘TUPE’, your employment rights are protected. This can include mergers where two companies close and combine to form a new company. When a TUPE-protected transfer takes place, the new employer takes over nearly all rights and obligations in your employment contract. Once the transfer has taken place, make sure you are given an up-to-date written statement of employment particulars. This should give the name of your new employer and say that your terms and conditions haven’t changed.
If the new employer refuses to meet the terms of your contract, this will be a breach of your employment contract
Insolvency
If your employer is insolvent and their business is being transferred or taken over by another company, your employment rights might be protected, depending on the type of insolvency proceeding. There are some differences to the protections offered during a normal transfer.
Where your employer is insolvent, and they are trying to rescue the business, your employment rights may be protected in a transfer or takeover. This type of insolvency involves administration or a voluntary arrangement with creditors.
If your employer is closing the business, selling the assets and distributing the proceeds to creditors your employment rights will probably not be protected during a business transfer or takeover. This type of insolvency normally involves bankruptcy or liquidation.
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