ChatterBank0 min ago
pre pack administration
4 Answers
I need some advice on this quite complex situation. fingers crossed. The company I work for has just announced that it has entered a pre pack administration, selling the more profitable parts of the company and putting the branch that I work for up for sale. I am not completely ignorant of business practices and have heard that pre pack can be a way of dumping a business and getting out of statutory obligations to creditors and employees. Should I be worried? The branch of the business I work for is not doing well.
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Whilst I do not deny that restructuring a business in this way that separates the profitable and unprofitable parts is going to drive a wedge between the bits wanted and the bits rejected, I am not sure about your assertion that statutory obligations to employees (your main concern?) can be circumvented.
If you are part of a busines that is sold on, or put into receivership then sold on, I know of nothing that prevents TUPE transfer applying - to give you a certain level of protection for your existing employment contract terms.
If part of the business goes belly-up with zero assets, there are regulations to ensure that staff receive notice money and minimum statutory redundancy money.
I accept that there are probably ways of 'restructuring specialists' making sure that one bit of the business moves forward profitably leaving another bit dead in the water, but don't believe it impacts your statutory rights.
What have you heard / evidence have you got?
If you are part of a busines that is sold on, or put into receivership then sold on, I know of nothing that prevents TUPE transfer applying - to give you a certain level of protection for your existing employment contract terms.
If part of the business goes belly-up with zero assets, there are regulations to ensure that staff receive notice money and minimum statutory redundancy money.
I accept that there are probably ways of 'restructuring specialists' making sure that one bit of the business moves forward profitably leaving another bit dead in the water, but don't believe it impacts your statutory rights.
What have you heard / evidence have you got?
You should certainly be worried.
The current owners were presumably not interested in taking your branch forward. An Insolvency Practitioner will not trade the company indefinitely. Therefore if they do not find a buyer in a timely manner then it is highly likely that you will be made redundant.
Should you wish to discuss your matter further, please do not hesitate to contact me. www.finance7.co.uk/pre-pack_administration.html
The current owners were presumably not interested in taking your branch forward. An Insolvency Practitioner will not trade the company indefinitely. Therefore if they do not find a buyer in a timely manner then it is highly likely that you will be made redundant.
Should you wish to discuss your matter further, please do not hesitate to contact me. www.finance7.co.uk/pre-pack_administration.html
Pre Pack Administration is becoming more and more common!
Both employers and employees require expert advice on the process and I would recommend Express Tax Solutions.
They helped my company with a pre pack and also advised me on TUPE for the staff! Anyone needing immediate advice should go to http://www.expresstax...k-administration.html
Both employers and employees require expert advice on the process and I would recommend Express Tax Solutions.
They helped my company with a pre pack and also advised me on TUPE for the staff! Anyone needing immediate advice should go to http://www.expresstax...k-administration.html
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