I was made redundant in March. I worked for company no1 for 7 years, the holding company then formed company no2 in April 2008, they transferred me in April 2009 by way of TUPE to company no2, and they placed no2 in voluntary liquidation in March 2010. I have since found out that company no1 acquired no2 in January 2009 for a £1 share and no one consulted with us on this prior to the TUPE taking place, We where all told that the two companies would run as separate companies from 1 holding company.
Is this constructive
Is This Legal
- 26-08-10, 03:16 PM #1markl
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Is This Legal
- 26-08-10, 04:26 PM #2
Your post is a bit confusing, but it sounds as though the first company owned the second company that your job was transferred to. It's not clear exactly why you consider this to be a problem though. What difference has it made?
Your length of service was presumably preserved and your terms and conditions transferred intact, is that right? So when you were made redundant in March you should have received redundancy pay based on your total service.
Do you feel your redundancy was not genuine? If you do I'm afraid it's too late to do anything about that, you are way out of time to claim unfair dismissal.
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- 26-08-10, 04:48 PM #3markl
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Thanks for your reply, I was trying to fit a lot of detail in quick time.
The director of Company no2 was originaly a director of Company no1, he bought a property to lease back to company no1. Other directors did not recieve this well from the chairman. They subsequently set up company no2 from the holding company and informed our director that they would make him northern director for company no2. With no1 not directly influencing the works this appeared like a good move. We where all transferred in April of 2009 with this understanding. Unfortunately, we where paying overheads to Company no1 for the administration works because they would not allow us to run it from our office (the two owners where made directors of the 2nd company). They made a large loan to the company so from the out set it made it difficult to turn over the funds required, from what was a profitable business. In March 2010 they placed the company into voluntary liquidation without consulting the northern director and closed us down the next day. So as you may see, it appears to me that they constructed this company to take back control of the northern works without having to pay out full redundancy and lieu of notice.
I have placed an ET1 form in time and I have a tribunal date set for October, I just don't know how best to plead my case.
Hope you can advise.
- 27-08-10, 04:52 PM #4
It's not clear what you are actually claiming, though. Are you claiming unfair dismissal? On what grounds do you think your dismissal was unfair? Do you think there was not a genuine redundancy situation? Sorry, it's difficult to see how all this to-ing and fro-ing with holding companies and directors over the last two years translates into a tribunal claim now.
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- 23-09-10, 03:34 PM #5markl
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Since moving on with the claim, I have had chance to take stock and read up a bit more on TUPE.
In the first case I feel that the respondant failed to inform and consult in the manor as requested by TUPE. They sent me a letter only 4 days prior to the TUPE taking place and did not inform us in that letter that company B would be a subsidiary of company A.
Company A had so much control over company B that I was in fact still employed by company A.
Because I only recieved the statutory redundancy and leui of notice I feel that other people being offered the same TUPE deal should think long and hard before continuing to work for their employer, it has become evident to me that companies are using this loop hole as an easy way to trim their companies down and avoid full redundancy packages.
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- 23-09-10, 05:43 PM #6
What 'full redundancy package' did you lose out on though? Was there an enhanced package in your terms and conditions previously that was not honoured?
- 23-09-10, 06:14 PM #7markl
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