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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 50182
Experience:  Qualified Employment Solicitor
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I am currently working for a company that has gone in to administration.

Customer Question

I am currently working for a company that has gone in to administration. The administrators have just sold the company. Is my contract valid? As the contract i had was with the old company. I work in homecare and my clients have been asking if their contracts are valid also?
Submitted: 4 years ago.
Category: Employment Law
Expert:  Ben Jones replied 4 years ago.

Ben Jones :

Hello, my name is Ben and it is my pleasure to assist you with your question today. Do you mean if your contract has transferred to the new company? If so, did they take over the old company as a going concern to keep the business alive?

JACUSTOMER-kwc6yz9w- : Hi Ben, yes as far as I am aware they purchased the company as a going concern.
Ben Jones :

If that is the case then it is most likely that your contract would have automatically transferred to the new employers under a piece of legislation known as TUPE. This kicks in when there is a transfer of a business and sale in an administration as a going concern has been included in a relevant transfer for TUPE purposes. Your employment would have therefore transferred to the new employer on its existing terms and conditions. Your clients' contracts, assuming they were with the old company, would have transferred as well but if they find that the services they get are different or other contractual terms and not being met they could consider cancelling them if necessary.

Ben Jones :

Please let me know if this has answered your query or if you need me to clarify anything else for you in relation to this?

Ben Jones :

I hope this has answered your query and would be grateful if you could please take a second to leave a positive rating - your question will not close and I can continue providing further advice if necessary. Thank you