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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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I submitted a question yesterday and made payment. It was

Customer Question

I submitted a question yesterday and made payment. It was a question about Agency Workers in Agency 1 being moved to a second agency Agency 2. I called myself betty yesterday. I have never received a response.
Submitted: 2 years ago.
Category: Law
Expert:  UKSolicitorJA replied 2 years ago.
Hello,

I do not see any previous question by you logged here. Can you repeat the question here please?
Customer: replied 2 years ago.


Of course - Hi!


 


We are an Employment Agency. We have just started a new company, a second employment agency, to siphon off a sector of our business, for accounting purpuses really.


 


So we need to move some of our temps from one company to the other. We own both companies. Nothing at all will change for the temps except the 'employement agency name. They will continue to work int he same client organisations until their contacts end. But as temps under contract for services, is there anything I need to worry about? (no TUPE)


 


Thanks

Expert:  UKSolicitorJA replied 2 years ago.

Hello,

 

What you are proposing to do is an internal group restructuring and a contract should be entered into between agency 1 and agency 2 for the proposed deal whereby agency 2 is liable for all obligations of agency 1 in respect of any business and temps transferred from agency 1 to agency 2.

You need to issue new contracts to the temps and the clients in the new agency's name, or assign these contracts to the new agency, if the contracts allow assignment.

TUPE will not apply as the tems are working as independent contractors but you may assure them that any obligations owed by the first agency will be met by the second agency as far as they are concerned.

Hope this helps

Customer: replied 2 years ago.


Thank you - very helpful


 


We are desperately trying to avoid having to send new contacts to all the Temps (over 100) - would it be sufficient to send an 'amendment to contract' letter informing them of the reason for change, the name of the new Employing Company and confirming that there are no other changes to contractual terms?


 


What we really want to avoid is them having to sign and return the contracts as the Temps are all at different Client companies and we don't want to have to chase them to sign and return to us. We'd rather communicate fully outward and leave it as 'we will asume you are happy with the above schanges unless we hear from you in 28 days"-type of an arrangement?


 


Thanks

Expert:  UKSolicitorJA replied 2 years ago.
Understood.

In that case, yes, what you are proposing to do is fine. In your letter, you should explain that it is merely an internal group restructuring exercise and that their contracts will now be with agency 2 who will meet all liabilities and obligations to them which were previously owed by agency 1.

All the best
Customer: replied 2 years ago.


Many thanks - very concise and helpful!

Expert:  UKSolicitorJA replied 2 years ago.
Thank you. Please take a second to rate my answers.

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