legal eagle advice please for my step son

[milkermel]

Dont want a full legal consultation, but just wondering if someone could point me in the right direction/set my lads mind at rest.

He is 23 and took responsibility of a veg shop 9 months ago. Unfortunately the previous tenants didnt tell him that there was a large rent hike coming up and a few other things.

So after doing well for 9 months he has not found that it is costing him not making money (he was putting his own money in and not taking wages). Last week he closed the shop.

there were 3 staff who were there when he took the shop on, they are now saying they are taking him to court for redundancy. Can they do this, is redundancy compulsory?

I have told him to sit tight and wait for the solicitors letter to come, but know he is worrying about it.

Any advice appreciated.

 

[drstitson]

Not a lawyer BUT if he took over the business as a going concern, including staff, then their redundancy rights will obviously depend upon their length of employment BUT anyone who has worked for the business for >2 years will be entitled to something. presume they have written contracts.

If however he started his own new business on taking on the shop and took on existing employees with new contracts (written or verbal - just having someone turn up and paying them counts) between him and them then they have no rights after only 9 months.

 

[Monsieur Abeille]

May be worth trying the local Citizens advise bureau as well if you have one. They do know basics of employment law

 

[Erichalfbee]

If you take on a going concern with staff you have to honour their contracts with their previous employer. Does he have copies?
Redundancy is payable if you have been made redundant after at least two years employment and is a form of dismissal from your job, caused by your employer needing to reduce the workforce.
As he has ceased trading I'm not sure that it would apply.
If it does apply he is obviously unable to pay and it that case his staff can get a payment from the National Insurance Office.
I might suggest that he shouldn't really worry.
I'm sorry he was sold a pig-in-a-poke by the previous owners.....really shoddy.

 

[drstitson]

after a bit of reading cessation of trading still counts for redundancy payments.

obligations of employer personally will be different if the company has become insolvent rather than just closed down with debts settled etc.

BTW - i think employers should also pay (on top of stat redundancy pay) a sum in lieu of adequate notice of termination of employment if the business was shut down at short notice - depends upon contract terms.

FYI: Selwyn's law of employment is available on google books.

 

[For want of a better word]

I would assume the lad had an insurance policy to cover the business.... most offer free legal advice over the phone.

back in the last century if a new business was started the employees who came over as it were were classed as new employees and lost redundancy rights, although I believe the employee had some rights against the previous employer IF the company was limited and bought out as a going or liquidated concern..........

A total minefield that needs an EXPERT and NOT the Beek down at the Pub!!!

He can appeal against an unreasonable hike in rent.

If liabilities are Limited I would dump the business and that private landlord and (???declare insolvency) if the landlord continues to unreasonable demand rent...... start up somewhere else


Good luck

 

[beeatshellards]

with Ican hoppit, on your public liability and shop policy they always have a free legal team for advice

 

[Black Comb]

Yes they are due redundancy (contracts continue under TUPE) and if he can't pay the government does (eventually). Is he in administration or liquidation?

More to the point, what was his trading status? Sole trader or limited. Did he sign any guarantees? Does he have any trade creditors who will seek to make him bankrupt? Did he sign a lease?
The staff may be the least of his worries.

Also, he may have a claim against the previous owners but these are difficult and expensive to enforce.

He needs some qualified advice.

 

[milkermel]

Thanks folks, some sound advice, have now been onto the Directgov site, doubt if there are any contracts from previous employer and dont think lad did them either (office work wasnt his forte)

will point him towards the citizens advice bureau as well me thinks.

It will be a good leason for him in the whole employer side of things!