Transfer of Employment


Well-Known Member
This I am asking for a friend. his employer is selling the business. He has apparently been told that the new owners who ever they may be will take him on. (1) Will they still pay the salary he is on? (2) Does his present employer owe him redundancy. (3) Does the new owners have to employ him.
Thanks, Tusker


Well-Known Member
The law may be different in England but here while a condition of sale can be made by the seller that the buyer employs
the staff already there but it is only binding for three months after that you could be found unsuitable for the position made redundant, fired etc.
As to your other questions I am not sure, think the 3 month rule will also apply to salary.

The best thing your friend can do is contact citizens advise they will be able to tell him the exact situation at the present time.

My information may be out of date as its nearly thirty years ago that I was in this position.
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Well-Known Member
Under UK employment law, providing your friend is employed by a company and has been there for 12 months or more, then his contract is with the business and not the shareholders and as such would need to be made redundant under a restructure by the new owner if they wanted to get rid of him.

As has been said, CAB will give good advice on his specific circumstances.


Well-Known Member
As per the above.
Assuming the "business" is a proper business and his employment is regular employment not casual, nothing should change automatically.
1) There is no automatic reason for his salary to change, because the sale of the business is not directly relevant to him. The details of his employment are as agreed between him and the business that employs him.
2) His present employer is the business, not the person (his boss).
3) The new owner (unless he has given some assurance during the purchase) would be under the same obligations as the old owner.
However, if he has been told the new owners will "take him on", that has a hint of him not really being properly employed there at present??
As Nigel said Citizens Advice Bureaus are usually good sources of advice. His contract may provide for his employer to pay for him to consult an employment lawyer under certain circumstances. His old employer or his lawyer may know the easy answers to his concerns and a tactfully phrased letter etc.. Some law firms operate pro bono clinics often through charities which can also give good advice.


Well-Known Member
As above, research: Transfer of Undertakings (Protection of Employment) commonly referred to as TUPE.

Heym SR20

Well-Known Member
I am professionally involved in the buying, selling and investment of private equity into businesses. The most valuable asset in any business are the staff and in particular their experience and expertise. That's what people who are buying businesses want and pay good money for. New owners will in general put new energy into a business. Those who are prepared to respond often have a huge opportunity. Those who have been taking the **** may be found out by new owners. Often sellers of businesses have lost interest, take their eye off the ball and thus some think they can get paid for doing b... all