Employment Issues
Employees of a business often form a big part of an acquisition. It may be that the employees or key employees are the main driver behind the acquisition. It may also be the case that the employees form an unwanted complication to the deal but relevant issues cannot be overlooked.
In a share purchase, the employment contracts of the business will remain in place as the employer has not changed in the eyes of the employee. However a purchaser of shares will need to ensure that the contract carefully protects their position to ensure that any employee liabilities are covered in the Share Purchase Agreement.
In an asset purchase, the employees of the business will (in most cases) automatically transfer to the purchaser of the target business pursuant to the rules of TUPE (the Transfer of Undertakings (Protection of Employment) Regulations 2006). For this reason it is vital that a purchaser has considered this risk before entering into the drafting phase.
ARTICLES
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Compromise Agreements are becoming increasingly common as businesses shed their employees
Tony Moore, Director of AMD Solicitors looks at some pitfalls.
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Agency Workers - Rights Explained
Emma Muir Solicitor with AMD solicitors explains the rights of Agency Workers:
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Some Facts About Redundancy
In the present economic climate employers and employees may find themselves in the position where redundancy is being seriously considered. It is worth bearing in mind some do’s and don’t’s.
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Unfair Dismissal
Every person who is employed has a legal right not to be unfairly dismissed from his or her job. If an employer terminates an employment contract, whether with notice or otherwise, then an Employment Tribunal can be asked to consider whether or not the employee has been fairly dismissed.