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Company spin-off: Forced to move company?

  • 22-11-2014 5:26pm
    #1
    Naos
    Registered Users, Registered Users 2 Posts: 4,738 ✭✭✭


    A friend of mine works for company A.

    This company is being split into two, let's call them A & B.
    He's just been told that he will have to move to company B and he is not happy about this at all.

    His job will still exist in Company A, there are 8 people doing the job but there will be only 4 positions. The other 4 will go to Company B. He's also the longest serving.

    He does not want to move as it's going to a completely different company and the work will be (slightly) different.

    What are his rights if any?

    Appreciate the help!


Comments

  • #2
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    Neither company is the same as the original, presumably that ceases to exist. Sounds like the original company is being dissolved and partners/directors are going their separate ways. He will have same T&Cs of employment and can certainly seek legal advice but if original company is dissolved then he will be taking legal action against a company which no longer exists.


  • #3
    Naos
    Registered Users, Registered Users 2 Posts: 4,738 ✭✭✭Naos


    Cheers for the response Davo.

    Company A will continue to exist - as said in OP, there will still be 4 positions in Company A.

    I also work in Company A, different department. My contract/position etc will not change.


  • #4
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    Naos, you may work in the same place doing the same job, but if the company splits in two, you will probably find that the original company has dissolved and two new companies have been set up with different directors. Your contract will continue unchanged as ownership of that company will probably be transferred to the remaining partner under TUPE regulations. This happens quite often where two or more people set up a company, then after a period of time they decide for one reason or another to go it alone.

    This happened to both my brothers, one is an engineer, the other an accountant. Both worked for companies that split due to partners falling out, both had to go with one of the partners depending on the clients/projects they worked on with one of the partners.


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