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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 50202
Experience:  Qualified Solicitor
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I have been working company short of ten

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I have been working for my company for just short of ten years. The company isn't doing so well as the two directors have opened another company and have put all their efforts into that one. I am the general manager and I have also been pulling in some work for the new company. My employers have now said that they are going to start employing me from the new company and will be paid by that one. I am thinking they will soon be closing my current company down.
The thing is if I just move over to the new company do I lose nearly ten years of employment rights ie redundancy pay, notice periods, rights to tribunal after two years etc. I have the feeling they are pre-empting closing us down and paying as little redundancy as possible..
What should I do?
Hello, my name is***** am a solicitor on this site and it is my pleasure to assist you with your question today.Firstly have they indicated to you any change to your contract of employment when they propose to transfer you across please.
Customer: replied 2 years ago.
Not as yet I have asked for a meeting tomorrow so I am trying to get things clear in my head of what I need to be saying. My contract is years out of date and doesn't even cover my current role as I was promoted and new contract issued.
Customer: replied 2 years ago.
no new contract issued sorry
Thank you for your response. I will review the relevant information and will get back to you as soon as possible. Please do not respond to this message as it will just push your question to the back of the queue and you may experience unnecessary delays.
Many thanks for your patience. You would not necessarily lose any of your rights in relation to continuous service, which will dictate your rights on dismissal, including redundancy pay, notice period, etc.
What really matters is whether you could treat the two companies as ‘associated employers’. If they are deemed associated employers then your move from one to the other, without any break in service, means that you would have retained all your rights as above and tour service would be deemed continuous.
To determine if they are associated employers we need to look at section 231 of the Employment Rights Act 1996. It states that employers a associated if:
• One is a company of which the other (directly or indirectly) has control, or
• Both are companies of which a third person (directly or indirectly) has control.
So as long as the situation here meets that criteria you will have the necessary protection and know that your rights will remain unaffected. You may certainly argue that as the people behind both companies are the same and they have control over them, that these two companies are associated employers.
If these two employers are not associated according to the above definition, then your move from one to the other would mean that you start from scratch and your continuous service and all associated rights will be reset. In that situation it may be best to hang on in the current job and see what they do with you. If they close the company down you would be being made redundant and due redundancy pay. Even if they become insolvent, the Government can cover most or all of what you are due but for this to happen they must be insolvent and you must have been employed by them at the time that happens.
I trust this has answered your query. I would be grateful if you could please take a second to leave a positive rating (selecting 3, 4 or 5 starts at the top of the page). If for any reason you are unhappy with my response or if you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you
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