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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 61764
Experience:  Qualified Employment Solicitor
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What happens with my employment contract if I am employed at

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What happens with my employment contract if I am employed at a company and afterwards I buy the business and become the sole owner and shareholder
JA: Have you discussed the employment contract issue with a manager or HR? Or with a lawyer?
Customer: no
JA: What is your employment status? Are you an employee, freelancer, consultant or contractor? Do you belong to a union?
Customer: ?
JA: What confuses you?
Customer: are you a bot?
JA: Yes, I'm a bot. I make the process of talking to the Lawyer more efficient and affordable by asking basic questions. Anything else you want the Lawyer to know before I connect you?
Customer: that is all

Hello, I’m Ben, a UK lawyer and will be dealing with your case today. I may also need to ask some questions to determine the legal position.

Customer: replied 12 days ago.
Sure

Please confirm it was a share purchase to acquire the business?

Customer: replied 12 days ago.
yes, it was a share agreement to sell 100% of shares of the company

SO what do you need to know about your contract exactly?

Customer: replied 12 days ago.
I want to know if my employment contract before buying over the business is still in place or is voided (since now I am the only person in the company and the sole share holder)?

But as you are the only person in the company and in charge of everything how does that matter to you, when you can set whatever terms you want?

Customer: replied 12 days ago.
Because I sold this company to another party now. And the first owner, who sold it to me, is trying to sue me because I stole the intellectual property of the company and I am using it to build a new business.

When you say you 'stole' the IP, how did that happen - was it not transferred on the purchase of the company?

Customer: replied 12 days ago.
But I am thinking this is not possible since I bought that company over and became sole share holder without any special requests or clauses from the first owner. And I believe that my employment contract, which had some non-competition clauses, should be totally nullified after I became the sole owner of the company.
Customer: replied 12 days ago.
Yes, everything belonging to the company was transferred to me during the share transfer. the previous owner has no right or stake in the company any longer.

Ok thanks, I cannot see how they are claiming you stole their IP when that would have been included in the company sale. And in any event, because you bought the shares, rather than just the assets and goodwill, a law known as TUPE would not have applied. Had it applied, your employment contract would have automatically transferred over to the new owner (even if that was you), but without TUPE, the existing contracts would have ceased at the time the transfer occurred and any employments would have carried on under any new contracts that may have been issued, or just a simplified implied contract.

 

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Customer: replied 12 days ago.
Yes! Thank you and have a great evening!

All the best