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Is Redundancy due?

Is Redundancy due?

If a non-incorporated business is sold (or even gifted) by the owner to an existing employee, does the vendor still have to pay redundancy pay to the former employee?   Evidence to back opinions up would be helpful.


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30th Nov 2012 07:40

TUPE would apply ...

the seller of a business never has to pay redundancy as any employees would automatically transfer to the new ownership on the date of the sale. Often, as part of a sale agreement, it is agreed that the seller will pay for those costs but it is the new owner that ulitimately has the responsibility. In your case (if I read it correctly) then your ex-employee who is now the new owner can't make himself redundant so there is no issue.

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