Hi,
We have recently made an employee redundant, who joined the company 20 years back when the company was a partnership company. In 2005, we
changed the company from partnership to a limited company and all employees were given the new employment contracts. To calculate the redundancy pay
entitlement for this employee, do we need to calculate the whole 20 years of service or he is entitled for only 9 years of employment since the new limited
company was formed.
Please advise.
Replies (6)
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If TUPE regulations apply to the transfer, as they probably do, then his employment is continous between the two entities, which is the point of the regulations.
If you are not sure whether the regulations applied you will need to take advice from an employment lawyer.
Did the partnership make him redundant when it incorporated?
If not, then he should be entitled to redundancy pay based on 20 yrs service. If he was made redundant and then employed by the ltd company, he should get redundancy based on 9 yrs service.
But if TUPE applied.....
If not, then he should be entitled to redundancy pay based on 20 yrs service. If he was made redundant and then employed by the ltd company, he should get redundancy based on 9 yrs service.
Then any such redundancy would have been illegal at the time so still 20 years!
That's true
I just tried to explain it a simple but logical way, as many people don't know what TUPE means.
Meaning of TUPE
Essentially TUPE says that if the business itself continues, even though it changes hands, then that change of ownership is ignored for employment purposes. Note when I say business, I mean what is done to make money. If the partnership sold widgets and the company sells the same widgets to the same general market, then the business has continued for TUPE. Presumably in this case the partnership incorporated, but it would still apply if the business had been sold to someone entirely separate.