change of company status and redundancy payout

change of company status and redundancy payout

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 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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By duncanedwards
13th Jun 2014 20:37

No idea
But the decent thing to do would be to assume 20 years.

Thanks (2)
By johngroganjga
13th Jun 2014 20:40

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.

Thanks (2)
By ShirleyM
14th Jun 2014 11:22

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.

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Replying to andy.partridge:
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By Richard Willis
16th Jun 2014 13:19

But if TUPE applied.....

ShirleyM wrote:

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!

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By ShirleyM
16th Jun 2014 13:47

That's true

I just tried to explain it a simple but logical way, as many people don't know what TUPE means.

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Stepurhan
By stepurhan
16th Jun 2014 14:10

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. 

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