Status of employees after a pre pack

Status of employees after a pre pack

Postby Underpressure » Wed Apr 21, 2010 2:10 pm

If my employer completes a pre-pack is my current employment contract void? what is my notice period? Thanks for any help
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Re: Status of employees after a pre pack

Postby Graham Wilson » Wed Apr 21, 2010 2:44 pm

Hello Underpressure and welcome

The good news for you is that your contract as an emplyee is not void. By law, you should be transferred to the new phoenix company under exactly the same terms and conditions and maintain the same length of service as you had with the old company.

If the new business does then want to make you redundant, it will have to go through the standard redundancy procedures.
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Re: Status of employees after a pre pack

Postby Derek Cooper » Thu Apr 22, 2010 1:44 pm

Hi Underpressure

The law surrounding the transfer of employees if a company is sold is known as TUPE and is very strict. Because the pre pack process effectively involves the sale of the comapany to another - notwithstanding the fact that the new business is a new start up - these rules must be adhered to. As such, you must be transferred to the new business. If you are not, you would probably have a case for unfair dismissal against the new business.
Derek Cooper - Corporate Debt Expert

Derek has worked in corporate insolvency and financial restructuring for 15 years. Derek can be contacted for an informal discussion at derek.cooper@coopermatthews.com or visit http://www.coopermatthews.com
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Re: Status of employees after a pre pack

Postby Steven Jackson » Mon Apr 26, 2010 2:17 pm

Hi Underpressure

As the other posters have said, you should be protected by the TUPE employment rules. Your contract should remain intact. You can not just be dismissed and if redundancy is on the cards, this would have to be undertaken once you have transferred to the new company which would be repsonsible for making any redundancy payments etc.
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