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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3497
Experience:  Solicitors 2 years plus PQE
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I was a director and employee of a small business that went

Customer Question

I was a director and employee of a small business that went into liquidation at the beginning of August. The E-commerce website and some stock and assets of the business were sold by the agents acting on behalf of the insolvency practitioner to another business operating in the same field. Myself, my fellow director and the other 4 employees put a claim into the Insolvency Service for redundancy pay and compensatory notice pay. We heard 2 days ago that all of the claims had been rejected as the Insolvency Service regarded it as a Transfer of the business under TUPE, which we disagree with completely. What do we do now, can we claim against the Insolvency Service or do we need to claim against the other business? We have already asked the IS to reconsider but they didn't change their view. Any advice appreciated.
SR
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.
Hi
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Have you considered suing the company that bought the assets? If the IP is saying it is a TUPE scenario then your employment should have transferred and if you did not transfer then you can claim a transfer.
How along ago did the transfer of assets take place?
Kind regards
AJ
Customer: replied 1 year ago.
Business went into liquidation on August 5th, but we didn't get the decision from the IS until Oct 23rd. What is the time limit for a claim to the new business?
Expert:  Alex J. replied 1 year ago.
Thank you.
The time limit to claim a transfer is three months. You just have enough to time to bring a claim.
I would go and see and employment lawyer asap and get them to write a letter to the new business lodging your claim.
Do you have confirmation in writing from the IP they consider this a TUPE matter?
Kind regrads
AJ
Customer: replied 1 year ago.
Nothing in writing from the Insolvency practitioner, no, in fact it seems to have been a shock to them too, but they are also now washing their hands of the issue. I have it in writing from the gov Insolvency Service, that the claim was rejected under TUPE
Expert:  Alex J. replied 1 year ago.
Hi
Thank you.
If you should have transferred under TUPE then it is not too late to claim a transfer but you have to do so before the time limit expires. If they refuse to accept you then you may have any employment claims applicable to you for example wrongful or unfair dismissal.
Does the old company actually have money to pay the claim if you pursued it?
Kind regards
AJ
Customer: replied 1 year ago.
No the old Co. has no money and has been wound up. I will seek advice from a solicitor today. Thank you for your help so far.
Expert:  Alex J. replied 1 year ago.
Hi,
Thank you.
If the old co has no money there seems no point in pursuing it.
You have an admission that this could be a transfer situation - I would make a claim against the company that bought all the assets of the old co.
The only point you have to be wary of is TUPE can be relaxed in certain scenarios where an insolvency event has occurred. It may all hinge on when the transfer of the business undertaking occurred.
I would be most grateful if you would rate my answer in the mean time.
Kind regards
AJ

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