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JGM, Solicitor
Category: Law
Satisfied Customers: 12375
Experience:  30 years as a practising solicitor.
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My father, who was an accountant, died a month ago. He

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Hi,My father, who was an accountant, died a month ago. He employed three staff and one of them, Karen, would be entitled to redundancy money if we closed his business down. She worked there 21 years.Another accountant has come along and wants to effectively take on Dad’s clients and staff, but he wants to do so under a new company that he’s creating. If he takes on Karen as an employee, would the family’s estate be protected by TUPE? Or if the new employer dropped her after a few months, would she come back to us looking for redundancy pay?Hope to hear from you soon!Cliff

Thanks for your question. TUPE would apply here are there is a transfer of an undertaking from one business to another. However, you want to make it quite clear in the sale/purchase agreement that the vendor is responsible for the employee up to the transfer and the purchaser is responsible thereafter. The warranties which are standard in such an agreement should cover these points and most eventualities so as to protect both parties from any liability for which they have no direct control. I assume that the employee has no claims of any sort arising from her employment with your late father’s firm. The solicitor who deals with the sale will ensure that the written agreement contains the correct clauses. If this is done correctly the transfer will ensure that any redundancy after the date of sale will be the responsibility of the purchaser. I hope that helps. Please leave a positive rating so that I am credited for my time.

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