# Redundancy with present company and entitlements after take-over?



## Minnie (7 Sep 2015)

I am an employee of a private company that is in the process of being bought out by another company. I am under the impression that I will be made redundant (14 yrs service) in December and then offered a position with the new owners in January 2016 but on a contract basis with no benefits. Am I allowed to receive a redundancy and then work for the same company (different owners)? If I am no longer a PAYE worker what would my tax obligations be and if I were to finish working as a contract worker, would I be entitled to job seekers allowance, dental & optical benefits etc. 
Thanks in advance for any help on this.


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## Trainspotter (18 Sep 2015)

I do hope the following will be of some assistance based on my experience of what happened during my working life.
Firstly the Company wishing to acquire the one you presently work in cannot before the completion of it's purchase request any change of your current terms and conditions in your present employment. This is covered by European Employment Law called TUPE. This applies to any redundancy proposal prior to purchase, when due diligance is taking place, i.e. negotiations are under way to complete it's sale. However in your present employment, but before any hint of a take over, redundancy can take place if the employer deems it necessary in the normal way.
Here is what to do:
1. Obtain a copy of your current terms and conditions of employment from your H.R. dept.
    These set out your basis of employment, i.e. Hours Worked, Salary/Pay/Wages.Holiday entitlements Sick Leave, Bonus payments, Pension Scheme Non Statuatory redundancy entitlements
    Your basis of employment i.e. Permanent/Temporary, and any in-house agreements set out in writing or memorandum.
2. If you are represented by Trade Union or Staff association, they are very good at this kind of situation, ask them,it would seem you may not be.
3. If you are not in a position of Union representation, then you should contact a Firm of Solicitors who work in Employment Law. It there are 
    colleagues of your's in a similar position perhaps you should all get together, and find out the exact position within your company. They are obliged to inform you of the process especially the date of sale, and the firm buying will set out their stall before completion of the sale. Solictors cost money but the effort will be worthwhile. Do not let anything go by default.
4. O.K. So the transfer takes place, and you with the new employer, you continue as before and there is no change in your terms and conditions
    of employment, you have what you had with the previous employer. This is how it should be.
5. However what can happen is that the new employer can look at everyone within the new entity at a later time, with an intention to change terms and conditions of employment, this is normal,and the employer is entitled to do so, with consultation of course etc.
Remember the prospective new Employer cannot request to make any existing employee of the company they want to acquire,redundant prior to 
any takeover.


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## Minnie (3 Oct 2015)

Trainspotter said:


> I do hope the following will be of some assistance based on my experience of what happened during my working life.
> Firstly the Company wishing to acquire the one you presently work in cannot before the completion of it's purchase request any change of your current terms and conditions in your present employment. This is covered by European Employment Law called TUPE. This applies to any redundancy proposal prior to purchase, when due diligance is taking place, i.e. negotiations are under way to complete it's sale. However in your present employment, but before any hint of a take over, redundancy can take place if the employer deems it necessary in the normal way.
> Here is what to do:
> 1. Obtain a copy of your current terms and conditions of employment from your H.R. dept.
> ...


Many thanks for your reply appreciate all the information you supplied.


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