When considering buying or selling a business, or taking on a contract for services many entrepreneurs fail to consider the employment implications of the transaction prior to the purchase.  In most cases employment law requires the new owner or contractor to continue to employ the employees of the old business.  In addition, the new owner is limited in the changes it can make to the terms and conditions of employment that the employees previously worked under.  Employers have obligations to consult with employees prior to any transfer, and certain information about the employees must also be provided to the new employers prior to the transfer and within the statutory time-limits.  A failure to do so can result in the grounds for a claim.

In light of this, it is vital that all parties enter the contract fully aware of the employment liabilities it is due to take on.  A failure to do so can severely damage the financial security of the company and adversely affect the economic viability of the business deal.

The Employment Department has many years experience in advising companies on the employment law implications of business transactions.  We have acted for clients buying and selling companies worth over £200 million and companies that employ thousands of employees.  In addition, we have advised on small net worth transactions.