Q: I have been working in the same company since leaving college, the last twenty years. I was one of the first employees, although the team is now fairly large. I am relied on to do quite a bit but have a lot of latitude in how and when I do my work. I am on decent wages, probably better than most in my industry and certainly the best paid in the Company (save the boss himself!). The owner is thinking about selling the business, an offer has been made to him recently. I genuinely tried to see if I could raise the finance, but it was a non-starter. I am concerned that if he does sell the business, I will not have as good a relationship with the new owner and my role or wages will be diminished or changed. Can I be let go without notice; do I have any rights in the new business?
Dear Reader,
A. The precise nature of the transfer might be important. For example, if your current employment is managed through a Limited Liability Company, or through a sole trader? It is possible that the new buyer could simply be buying the Limited Liability Company outright, or migth be buying just the “undertaking”.
Irish and European law does make provision for exactly this type of action. Section 4 of the European Communities (Protection of Employees on Transfer of Undertakings) Regulations, 2003, provide that if a business is transferred, that all “rights and obligations” will pass to the new owner who will essentially step into the shoes of the old owner. There is no need to renegotiate your Contract, you are entitled to remain at the same rate of pay and other conditions. This would include time off, bonuses and other items.
However, it is generally the responsibility of your employer (be it your current employer or the person to whom he sells the company) to decide on the precise nature of your working hours – and if your new employer wants more set employment hours and duties you might well have to comply.
Any attempt to either reduce your rate of pay, or to reduce the conditions of your employment, can be a serious matter which would result in both your new and old employer paying compensation to you, any may result in a claim for constructive or unfair dismissal if the changes are so drastic so as to force you to leave.
You should confirm with both the new and old employers that your pay and conditions will remain as is. Your position seems to be integral to the business, and so it is most likely a priority for the new owner to retain your services. You should ensure that you have a Contract of Employment which incorporates the perks and flexibility that you currently enjoy so that it is clear what is transferring to the new employer.
It would be important that you retain any information that you hold with regard to the transfer of the business, which might include text messages, emails etc. If you have any queries, do contact your own Solicitor.
If you have a legal query that you would like answered you can email [email protected] or send your query to Alex O’Neill Solicitors, 22 Barrington Street, Limerick. The column is a reader’s service and is not intended to replace professional advice. No individual correspondence will be entered into.
