Company split - redundancy entitlement effects.

223vmax

A company 'A', operates with 100 employee's. The company 'A' is going to split into 2 new companies A & B. If an employee is moved from company A to new company B how would that effect redundancy entitlement? The role in the new company B and job description is exactly the same.

_Brian

It would be important that a deal is struck that full working entitlements and conditions are transferred with them employees. This should cover them to a greater extent.

davo10

223vmax wrote: »

A company 'A', operates with 100 employee's. The company 'A' is going to split into 2 new companies A & B. If an employee is moved from company A to new company B how would that effect redundancy entitlement? The role in the new company B and job description is exactly the same.

If TUPE regs are followed then unless your position is being abolished you have no entitlement to redundancy.

223vmax

Let me clarify; employee has been with company A for 5 years and is now employed by company B, is years service still accumulated continuously with company B assuming role and conditions are the same as they were with company A?

So if after 2 years with company B, they get made redundant is redundancy entitlement 5 years with A and then 2 years with B making 7 years continuous service?

davo10

223vmax wrote: »

Let me clarify; employee has been with company A for 5 years and is now employed by company B, is years service still accumulated continuously with company B assuming role and conditions are the same as they were with company A?

So if after 2 years with company B, they get made redundant is redundancy entitlement 5 years with A and then 2 years with B making 7 years continuous service?

7. The company split but your rights continue. For the previous 5 to be wiped company A would have had to terminate your employment and that would have meant you would have been entitled to redundancy from company A. If you are concerned, get an opinion from an employment solicitor or write a registered letter to the owners of company A and B requesting assurances that all time served with A should be taken into account if made redundant from B.