3 of 5 Halloween Horror Stories Employment Law: a Sausage Manufacturer's Take-Over TUPE Blunder costs them dearly

Situation:            A sausage manufacturing business who employed 48 people faced extreme hardship after their European export orders suffered post-Brexit and they faced supply chain issues for meat and ingredients, which were harder to obtain during the pandemic.

The financial position of this family-owned company worsened and sadly it became technically insolvent but not before deciding to sell the business interests to a larger meat catering company as a take-over proposition.

The take-over agreement meant that 50% of the staff jobs were saved and that 50% had to be made redundant to make the business more attractive financially. The 50% of staff who were made redundant were given no TUPE protected rights and none of them were consulted about other roles working in the larger employer’s business. 

 
Ashley Hunt, Director & Solicitor, Employment Team
Lawson West Solicitors, Leicester

Was this legal for the employer?  Answer: No.

TUPE Take-overs are required to protect employee TUPE Transfer rights – and the right to be offered another job on the same pay and entitlements through consultation and equal treatment.

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