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Employment

Employment

What Happens To Your Employees When You Sell Your Business?

Selling your small business has probably been an emotional experience and what will happen to your staff has probably been in the back of your mind for a time now. Many small businesses run to very tight margins and as such the issue of staff remaining, their fit in your buyer’s new plan and their remuneration is key.

Generally speaking, most business sales will involve using the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) which will protect employees when the business is sold.

TUPE acts in the following ways:

  1. the employees’ jobs usually transfer over to the new company
  2. their employment terms and conditions also transfer; therefore
  3. continuity of employment is maintained.

What If The Buyer Doesn’t Need All Your Staff?

The simplest route for an agreeable solution is to use a settlement/compromise agreement. These are effectively redundancy packages which employers can offer employees, making them aware of their statutory rights under TUPE regulations.

Beyond this, it becomes much more difficult to remove unwanted staff and the company may be liable for unfair dismissal claims. Depending on the timing, it could be the buyer or seller who is responsible for this.

We would recommend getting legal advice in the earliest instance to avoid action such as this diminishing the value of the commercial transaction.

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Kerry Houston - Kypta

For Kerry Houston-Kypta, Partner:

“Many thanks for guiding us through the sale of land. Also for in helping us to keep realistically within our budget. Our dealings with you both made it a pleasurable and stress-free transaction.”
Kerry Houston - Kypta
"As church building contractors we are well used to working on unusual buildings with unique problems to overcome. So, when the opportunity to buy a redundant church to convert to residential apartments came our way, we knew we would need a commercial solicitor  that could navigate a very unusual purchase. Having worked with Kerry Houston-Kypta on a similar project 10 years ago, we felt she was the one person who would make sure the complicated process of purchasing from the church of England went smoothly. As always, Kerry was available to answer any questions and offer sound legal advice in her calm and easy to understand manner. We are happy to say we completed last week and Kerry will also be assisting us with the development finance, drawing up all the leases and providing the sales conveyancing. We would have no hesitation in recommending Kerry to any property developers looking for excellent service, sound advice and competitive fees."
Kerry Houston - Kypta

"I would also like to express my gratitude for your professionalism, support and patience in dealing with this matter and the speed with which you managed to complete the work when finally you were provided with the undertaking. Thank you again for all your help. It is very much appreciated."

Charlotte Lilley

For Charlotte Lilley Solicitor: 

“Coles Miller were a real help during our move. They weren't just efficient and helpful, they were proactive. Charlotte Lilley helped us to buy with confidence by identifying several important issues in the early stages. I'd like to extend my thanks to Charlotte for keeping the transaction moving, in what were very difficult times for everybody. I would recommend Charlotte without reservation."
Charlotte Lilley
"We were very happy and satisfied with the service we received from Charlotte and her team. Charlotte and her team were patient and displayed full of professionalism. I will certainly recommend them to others."

Meet the team
Kerry Houston-Kypta Headshot

Kerry Houston-Kypta

Partner and Head of Commercial Property

Eleanor Lewns Headshot

Eleanor Lewns

Solicitors Apprentice

Kelsey Cadden Headshot

Kelsey Cadden

Legal Secretary