Ask an Expert - Purchasing an insolvent company
Ask an Expert - Purchasing an insolvent company
Q: We are considering purchasing a company
that is currently subject to insolvency
proceedings, but we are concerned that, in
doing so, we may be taking on too much. The
current employees are on very favourable
terms and conditions which we will struggle to
maintain. Is there any way we can change their
terms and conditions?
A: If you go ahead with the purchase then you will be required to take on the current employees under the rules of the Transfer of Undertakings (Protection of Employment) Regulations 2006. This includes permitting the employees to transfer across to your employment on the same terms and conditions.