Legal obligations regarding employees do not disappear in an insolvency and failing to meet these obligations can prove costly.
If there will be 20 or more redundancies in prospect, businesses need to consult with their employees in advance or face valuable claims and must give sufficient advanced warning to BEIS of the redundancies or risk criminal prosecution.
It is particularly important to maintain good employment relations when a rescue deal is imminent because TUPE will almost always apply when a business or a part of a business is sold as a going concern. The effect of TUPE is that it creates additional responsibilities such as the obligation to consult with the employees and disclosure of ‘employee liability information’. Parties cannot contract out of TUPE obligations so it is vital to get these right. Businesses in administration who have unionized workforces bring additional complexities such as the risk of industrial action and collective agreements.
Clarkslegal has extensive experience supporting businesses in these technically complex and time sensitive matters. We can provide advice on:
• Changing terms and conditions of employment
• Collective Redundancies
• Collective bargaining agreements
• Trade Union Relations