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Worked for a company for 5 years, company went into liquidation.

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The owner of the company...
Worked for a company for 5 years, company went into liquidation. The owner of the company then set a new company up which we all started to work for. We all thought we would have been due redundancy money but according to boss, a "tupe" transfer took place and told us we were no longer entitled to any redundancy money. Is this right?
Submitted: 8 years ago.Category: UK Law
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Answered in 5 minutes by:
6/20/2010
Solicitor: Michael Holly, Solicitor replied 8 years ago
Michael Holly
Michael Holly, Solicitor
Category: UK Law
Satisfied Customers: 7,088
Experience: I have 20 years of experience as a solicitor in litigation and other areas
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Yes you were simply transferred to the new busines doing the same thing you did before on the same terms and as such no redundancy payment needs to be made.

I hope this helps kindly click accept so that I get credit for my answer

Best wishes

 

Yours sincerely

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Customer reply replied 8 years ago
Relist: I don't appreciate being told to accept his answer..
I don't appreciate being told to accept his answer.
Solicitor: Senior Partner, Solicitor replied 8 years ago
Senior Partner
Senior Partner, Solicitor
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Did you transfer straight from one company to another or was there a break. Did the new business take over anything from the business in liquidation or did it start from scratch? Were you paid in full by the old company?
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Customer reply replied 8 years ago
The original company folded on the Friday but he already had a company set up and ready to go and the new company started on the monday.

The company took all the staff, a few vans, everything was the exact same. He told us originally we would get redundancy money and this would come from the government, then he told us about this tupe transfer. He never mentioned this originally.

Yes, we were paid in full by the old company.
Solicitor: Senior Partner, Solicitor replied 8 years ago
In that case i think that the answer you got from the original expert was correct .If the business transferred across then there would have been a TUPE transfer and you would all be automatically transferred.


It does depend on the precise circumstances . Did the old co actually terminate your employment? Have you had anything in writing? Was a liquidator actually appointed to the old co.
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Customer reply replied 8 years ago
There was nothing in writing at all, we were told verbally. We don't even had a contract for the new company.

There was a liquidator appointed to the old company but we don't have any more information.
Solicitor: Senior Partner, Solicitor replied 8 years ago
The critical issue is whether the liquidator or the company has transferred the business. There are consultation obligations and even in insolvency situations the employer should try as much as possible to comply.

You could write to the liquidator saying that you consider you are entitled to a redundancy payment and that you were orally told you were being made redundant but any claim if the co is insolvent will be against the state insurance fund they are likely to try and reject it on the basis that you were tuped over.
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