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What rights do have where myold company has been sold and

 
Ben Jones's Avatar
  • Answered by:Ben Jones
  • Solicitor
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in UK Employment Law

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Customer Question

What rights do have where myold company has been sold and I have beenTuped across to a new company which wre late in paying our payroll this month. Also I have reservation around the liquidity and viability of the new business and feel I am struggling to undertake my role as Financial Controller because I am not being given visibility of the new companies bank account or financial structure.

Submitted: 268 days and 7 hours ago.
Category: UK Employment Law
Value: £22
Status: CLOSED

Accepted Answer

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Expert:  Ben Jones replied 268 days and 7 hours ago.


Ben Jones :

Hello and thank you for your question, which I will be happy to assist you with. Please let me know if you have actually been paid yet?

Customer :

Yes i was paid 2 days late

Ben Jones :

When you transfer under TUPE you have the right to keep your old terms and conditions and the new employer would simply 'step into the shoes' of the old one. So if you were contractually entitled to be paid on a specific date then you can expect your new employer to adhere top this. However, delays may occur, especially following a transfer and as long as this was a one off incident then it would not be seen as a major issue, especially as the delay was only a couple of days. Of course if that resulted in any fines for delayed payments or going overdrawn then the employer should consider reimbursing you. As to your duties then again you can expect them to be in accordance with your existing contract. If your employer is now preventing you from exercising your normal duties and there is no clear explanation for that, you may wish to take this up further with them, such as by raising a formal grievance

Customer :

If the company fails to pay us ontime next month or goes into liquidationwithin say the next 4 months what rights do I have under tupe or otherwise?

Ben Jones :

if they fail to pay you on time then again that is a matter than needs to be pursued internally through a grievance. If it goes into liquidation then you would be made redundant and assuming you have at least 2 years continuous service you would be entitled to a redundancy payment

Customer :

Would the redundancy payment be based on the old companies agreed package or on statutory entitlement only?

Ben Jones :

if the old package was contractual then it would still apply

Customer :

what does 'contractual' mean? It was a package that had been agreed through collective consultation, before the sale, when they thought they would have to close the business.

Ben Jones :

if that was the case it is likely it is contractual and you can expect the new company to honour it

Customer :

ok thats great. Thanks for your help

Expert TypeSolicitor
Category: UK Employment Law
Pos. Feedback: 98.2 %
Accepts: 7201
Answered: 8/3/2012

Experience: Expert in UK Employment Law

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