Change of ownership, what happens ?

Keithmc40

I work for a catering company in a government building, the person how runs the company is retiring so the contract will be put out to tender and a new company will take over, so my question is what happens to the staff when the new company take over ?

Many thanks

davo10

If someone takes over the existing company you work for, google "TUPE", but if the company you work for folds and the catering contract is put out for tender, then another company may be contracted and they will have their own staff. You should talk to the owner about TUPE or redundancy if you are there more than 2 years.

Keithmc40

The contract will go out to tender and all going well a new company will take over, most of the staff are here 10 years and more

Dia1988

A company does not just die when a Director/owner retires, another Director must be appointed or other directors take over as MD. Alternatively another company may buy your company you work for and merge into one.

However, if the Director/owner just wants to close the company a voluntary wind up of the company will take place but not before all creditors are paid.

Steve

Don't think transfer of undertakings law would apply here.

I'm afraid, there is no guarantee that you will be kept on unless there is something in the catering contract that covers it.