Takeovers and transfers of undertaking

At privilege solicitors our solicitors can offer employers the necessary advice to avoid any employment related legal pitfalls which may arise as a result of purchasing or selling a business.

When purchasing a Business as a going concern are the employees as well as the premises, plant, equipment etc included in the sale?

The common law rule of privity of contract requires that every contract is a private relationship between two contracting parties, neither of whom has any unilateral right to assign its rights or obligations to anyone else. Therefore when a business is sold all employees must be dismissed and if the new owner wishes to recruit some or all of the former employees then it will be necessary to enter into new contracts with them as with the former customers and supplies.

This is obviously incompatible with modern legal principles of employment protection. Various statutory rules have been introduced to give some continuity of employment and prevent wholesale redundancy of all those employed. These statutory rules reverse the common law rule in five broad categories. If you are selling or purchasing a business then it is important that you seek the advice of a solicitor.

Contact us here for an initial discussion and to make an appointment or call our mobile friendly number on +44 (0) 20 3581 5678 to speak to an Employment Law Solicitor.

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