Voluntary transfer to new business start-up

RichCRX

Hi folks,

I am just looking for advice, potential concerns, suggestions on a voluntary transfer to a new business start up (with potential to be re-employed by current employer if new start up doesn't work out after 2-3 years).

Current Situation
- I am currently employed with company Y on a permanent contract and have been here for over 6 years.

- Current employer, company Y, is considering setting up a 'spin-off' company X, which it would like me to become managing director of.

- It's a shot to nothing, whereby if the new company X doesn't work out (giving it 3 years to make it work), I would be re-employed by company Y again.

What to look out for?

- I understand that by doing this, it could result in a break of my continuity of service with company Y which would impact my redundancy (if it came to it). On citizen's information, there is one point that states: "You have been voluntarily transferred to another employer and it is agreed that the continuity of your service will not be broken" - does anyone know what this means exactly and whether this can be applied in this circumstance?

- In addition to having a contract in place with laid out terms of re-employment to company Y in the event that company X doesn't work out, is there anything else I should be concerned of our watch out for?

If anyone has experienced similar, it would be great to hear from you. Any other thoughts, concerns, suggestions would be greatly appreciated.

Thanks,
Rich.

RichCRX

Anyone with experience of this?

OMM 0000

I don't have any experience of this, but it sounds like a great opportunity.

Questions:

1. Do you live somewhere where you could "easily" get another job? So if you took the role, and everything fell apart, would you land on your feet?

2. What is your current role - e.g. accounting, sales, tech, etc.?

SeeMoreBut

Do you not transfer under TUPE?

Donald Trump

Maybe you can get a "sabbatical" from current structure "Y"

RichCRX

Hi all,

Thanks for the replies. To answer some of your questions;

OMM 0000 wrote: »

I don't have any experience of this, but it sounds like a great opportunity.

Questions:

1. Do you live somewhere where you could "easily" get another job? So if you took the role, and everything fell apart, would you land on your feet?

2. What is your current role - e.g. accounting, sales, tech, etc.?

1.) Based in Galway - I wouldn't say it would be easy to find a similar job at the same salary/benefit level.

2.) Business Innovation Manager - So Project Management/Head of Internal Technology type role.

SeeMoreBut wrote: »

Do you not transfer under TUPE?

I'm not overly familiar with TUPE, but I'm not sure whether TUPE applies here as company 'Y' is still independent and is not being taken over by company 'X'. Perhaps I'm wrong and there's more to it with regards to TUPE?

Donald Trump wrote: »

Maybe you can get a "sabbatical" from current structure "Y"

With sabbatical's your still classed as an employee of company 'Y', so I'm not sure what impact that will have then with regards Revenue etc... with being an employee for 2 companies (one in which I'm on sabbatical).

3DataModem

It all depends on the terms of your contract.

This has been done before by large companies (Bank of Ireland did it with technology, moving staff to a new JV and giving them an option after two years to move back to BOI).

You need a solicitor with experience in employment contracts, they will help you ensure any return back to the old job is cast-iron, and that service is not broken.