New boss, no rights?
Question
I've been working for my boss for four years now, but he's just sold the business. The person who's bought the lease won't be trading under the same name as he already has a company. Because I've been accepted to work for the new boss on a 13-week trial basis, the old one says that I won't be entitled to redundancy pay. Is he right?
Answer
Just because your boss has sold the business on doesn't mean that you've lost the rights you've built up by working for him for four years. Also, the company's change of name will not affect your rights.
Unfortunately, the regulations around the transfer of undertakings (TUPE) are very complicated, so it might be a good idea to seek some face-to-face advice from a legal expert. In general terms, the TUPE regulations mean that when a company changes ownership the terms and conditions of the employees remain the same as they were with the previous employer. There are exceptions to this - such as pension rights - but your service with the previous company is added to your service with the new company. This means that any redundancy payments will be based on total service with both companies.
You may want to consider talking to your local Citizens Advice Bureau (CAB), Law Centre, trade union (if you're a member of a union) or solicitor about this matter. You could also try talking to the conciliation service Acas. If you do talk to an advisor about the situation it would be worth having your contract and any other paperwork relating to the change of ownership to hand.
Updated: 22/01/2009
Question answered by CAB
