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Ben Jones
Ben Jones, UK Lawyer
Category: UK Employment Law
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UK Law Only We gave up the lease of a public house at the

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UK Law Only

We gave up the lease of a public house at the end of a 1 year period imposed upon us via tacit relocation.
A new lessee took over on a completely new lease in terms of period , costs etc.
They did not comply with employment law in that they immediately rediuced staff working hours and they refused to pay staff statutory holiday pay.
There lease was for 3 years , but with a 1 year break clause.
The lease started on 1st Nov.2012, however i am told they have decided not to continue with it and have been given an exit date mid-Oct, but new lessee has yet been found.
It has been suggested to me that we (a Ltd company no longer trading), could somehow or another be resposable for any redundancy payments should a new lessee decide not to retain them because it is less than 1 year since they transfered from us to them.
Do we have anythign to be concerned about?

Ben Jones :

Hello, my name is XXXXX XXXXX it is my pleasure to assist you with your question today. When did the current lessee take over your lease?

Customer:

Our lease expired on 31st Oct 12, after a 1 year extension under tacit relocation rulings.

Customer:

The new lessee took over on 1st Nov on a completely new lease with different period and different financials

Ben Jones :

The transfer of a lease could trigger certain employee protection under a piece of legislation known as TUPE. If TUPE applied it would basically mean that the existing employees would have transferred to the new employer on their existing terms and conditions and preserved their continuity of employment. At the same time, the new employer (the new lessee) would have taken on all liabilities in relation to these employees, such as pay, holidays, redundancy, etc.


 


Even if TUPE did not apply and you were responsible for the dismissal of these employees, it would be too late for them to claim anything in relation to redundancy. The time limit for a statutory redundancy payment is 6 months from the date it was due, for a contractual (enhanced) redundancy payment - it is 3 months. To challenge the actual dismissal a claim would need to be made within 3 months of dismissal. So if all of this happened in Nov 2012 then it would be too late for the employees to claim any redundancy pay from you or challenge their dismissals.

Customer:

the new lessee took over on 1st Nov 12 on a completely new lease with different period and different financials. They signed up for 3 years with a 6 month break clause which they are now exercising

Ben Jones :

sorry we crossed replies, advice is abive

Ben Jones :

above

Ben Jones :

I hope this has answered your query and would be grateful if you could please take a second to leave a positive rating - your question will not close and I can continue providing further advice if necessary. Thank you

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