Other Frequently Asked Questions
I need to stay in the property what happens? I want to move property but I need a short period of time to move. What is TUPE all about?I need to stay in the property what happens?
There main alternatives are:
Take an assignment of the existing lease. Ensure advice obtained in relation to dilapidations, etc. so that the liability to the landlord is known. This will normally require any arrears to be paid to the landlord.
Take out a new lease. Where the existing lease is costly, an opportunity may be presented to renegotiate the terms of the lease. This will require some give and take to avoid the costs of moving should the landlord be unprepared to accept the proposed terms. Any existing lease will need to be dealt with and this will require the IP’s involvement.
If entering into an agreement, ensure that any obligations that the IP has to assist in the property element is documented. Consider obtaining a licence to occupy (see below).
If possible contact the landlord and agree terms in principal prior to buying the business.
topI want to move property but I need a short period of time to move.
It may be possible to agree a short term licence to occupy with the IP. This will require all costs associated with occupation to be met by the purchaser; heat, light, power, water, rent, rates, insurances, etc. Such payments would normally be made to the IP who would then pay the landlord, etc.
Legal advice should be sought to ensure that the purchaser is not trespassing.
topWhat is TUPE all about?
Transfer of Undertakings (Protection of Employment) Rights Act (TUPE or TUPER) basically protects employees’ rights should a business be transferred over to a purchaser.
As a basic rule all of the employee’s entitlements would transfer over to a purchaser should the business be bought as a going concern. There are several exceptions to this:
Pension rights; if there is a defined benefit (final salary) scheme then this does not have to transfer over to a purchaser. The purchaser would have to offer a defined contribution (money purchase) scheme in its place and would be required to contribute to this arrangement.
Arrears of wages and holiday – since April 2006 arrears of wages (from 1 February 2011 up to £400 per week (gross)) and holidays taken but not paid (up to the same limit) are payable by the DTI’s National Insurance fund. Any amounts not paid by the DTI would transfer over to a purchaser.
Changes to terms of contract - It is possible since the introduction of the Transfer of Undertakings (Protection of Employment) Rights Act 2006 (TUPE 2006) that the purchaser can seek to renegotiate the existing contracts of employment. This is done for the purpose of saving jobs. Such an agreement must be consensual; it would be agreed with a union if one exists or with representatives nominated by the employees.
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