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tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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I am a managing director of a company part of a plc, the plc

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I am a managing director of a company part of a plc, the plc is seeking to sell the company and the new buyers do not require me, possibly due to salary amount.
my contract With the plc is 3 months salary. Is this all I can expect or should I try for more. I secured a deal worth 100k per year for five years With the company who are now buying my business. I have no shares in the business and the Plc have funded the business which currently shows a loss. I have offerd to buy the business but they in exclusivity at the moment. the plc have agreed to let me buy the business if the new owners back out but I doubt this will happen. Would I be right to ask for more months in lieu of notice or just accept the three months

tdlawyer :

Hello, welcome to the website. My name isXXXXX can assist you with this.

tdlawyer :

Are they proposing to make you redundant?

Customer: Not mentioned just three months salary I was toldMonday I could finish then if I wished and I would receive this months and a furthe 3 months salary
tdlawyer :

Okay. And how long have you been there for please (with the old company and the new in total)?

Customer: The company is part of a plc and I have run the company for 2yrs starting 1st April 2012
tdlawyer :

Okay. Until you've been there for 2 years, you have no protection from unfair dismissal. Until that time (2 years), then you only have have a contractual entitlement to notice pay. However, if the reason for the dismissal itself is directly related to the TUPE transfer (which it might be here), then you do qualify for unfair dismissal protection, which means that you could demand something to waive any rights you might have to bring a claim for unfair dismissal.

tdlawyer :

Are they proposing to enter into a compromise agreement with you?

tdlawyer :

My view would be that you should be looking at least for your notice period (3 months) plus a sum to waive any unfair dismissal claims you might have (perhaps 3 months). However, you should be aware that there are grounds to dismiss still fairly following a TUPE transfer, such as ETO (economic, technical or organisational) reasons.

Customer: Sorry sent that to soon . I feel that they are trying to get out of things and if I am entitled to a better deal then I should try
Customer: Are you still there Tony
tdlawyer :

I am, yes.

tdlawyer :

Im not sure I got your question?

tdlawyer :

I think you're likely able to get something more than your mere notice period, because you might be able to say the proposed dismissal is due entirely to the TUPE transfer alone, and that, looking at the business, there is no ETO reason to make the dismissal fair.

Customer: soory
Customer: sorry lost connection. Back now due you think I should try for a better deal or just except . I have a good relationship with the plc but I am hurt with what they are doing.
tdlawyer :

Personally, I would always try and get a better deal than on offer, but equally, it might be that you want to preserve some goodwill perhaps (if any exists!) and do a lesser deal as part of that. It depends on your relationship, what future relationship you might want etc... and your attitude to negotiating something more that you're potential entitlement.

Customer: Should I go for 6 months or am I pushing things
tdlawyer :

I would try for that, you should always start high and work back (it's a valid negotiation strategy!)

Customer: Ok will do, just one more thing, if the new buyers back out at the end of the month and they are out of exclusivity I then put my deal to them and its agreed ipresume that I would still be entitled to my three months. In other words they want me to Finnish at the end of the month I could then be in a situation that I buy the business. Hope that sort of clear
tdlawyer :

Yes, if they're proposing to dismiss you still, you're still entitled to your 3 months notice pay, or to work yor notice period, if they decide to dismiss you. Also, though, once you go over the 2 years continuous employment mark, in April this year, you are protected from unfair dismissal, and this makes the severance pay likely to he higher if they want you to go without complaint.

tdlawyer :

And yes, buying the business could be something you still do, but this is obviously separate to your employment position.

tdlawyer :

One might impact on the other in terms of negotiations etc., but buying/employment issues are distinct issues.

Customer: Ok that's great so I should not sign any compromise agreement until I am happy with my deal they offer.
tdlawyer :

No, you shouldn't. In fact, for a compromise agreement comprising all your employment claims to be valid, you will be required to take legal advice, which the employer needs to pay for.

tdlawyer :

You then take it to a solicitor so that they can advise you on your specific position/entitlements.

Customer: That's a great help, Thanks Tony. Regards. Neil
tdlawyer :

Thanks Neil!

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Customer: replied 4 years ago.
Hi Tony, sorry forgot to ask is the three months salary pay taxable. Neil

Hi Neil. Yes, it would be, as it would be of an income nature.


Customer: replied 4 years ago.
Thanks Tony. Neil