Business Transfers & Restructuring

Whenever there is a change of ownership or restructuring in a business there are always employment considerations. Some may be straightforward and easily addressed while others can be much more complex. The starting point is that the contracts of employment, with all their current terms, will usually transfer automatically to the new owner under the TUPE regulations.

Everyone involved in the transaction needs to understand – and accept – this fact and its implications, though the effects of this transfer can often be mitigated with careful planning. Whatever happens, buyers need to fully understand the employment terms of the staff that they are taking on and how those terms impact existing arrangements. This is an essential component of an effective due diligence process and failure to fully understand employee terms can leave new owners open to unexpected challenges, delay and costs. We can advise both buyers and sellers that are looking to transfer or restructure their business and assist with the employment-related aspects.

We can:

• Conduct an audit of the sellers’ terms of employment.
• Carry out a due diligence process for the buyer.
• Assist with the transfer of required information under the Employee Liability.
• Advise on the implications that TUPE has when taking on staff members.
• Advise on any adjustments that need to be made before or after the transfer.
• Deal with post-transfer issues that arise.