Feb
28
Taking over a shop, do I have to keep an existing member of staff employed?
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I’m taking a lease from a woman when she leaves, i’m going to be selling the same or very similar items that she does, i’m going to call the company something different. It may even be next door to where her shop is at the moment (she has 2 side by side). She is saying that one of her staff will want to continue her employment when I take over. Am I legally obliged to keep her employed under these circumstances. Thank you for any advice.
Repossession
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3 Comments
March 2nd, 2010 at 2:45 am
If you’re just taking over the lease and not buying the business as a going concern, then the existing employees will still work for their current employer even when you own the lease. What the current owner does with them is up to her, but they won’t work for you and you don’t have to take them on.
March 2nd, 2010 at 10:14 am
If you are registering the shop as a new company then no you do not have to keep exsisting staff.
March 4th, 2010 at 12:31 am
If you are buying her business then I would look into TUPE law, this is where you take over the service that the other person is running, under this law you do have to take her on as you buy the service as a whole.
If you are buying the lease on a building and you are a different company then, to my knowledge you do not have any obligation to take the staff on too, as you could be offering a completely different type of service, eg. building was originally a pet store, worker was counter staff, you take over shop and your business is hair dressers, staff member would not have skill set as hairdresser.
It all depends on what exactly is happening between you two and what you are taking over.
Speak to Citizen Advice Bureau, and research more on the type of take over your are performing.