Resolved Question

If a company is bought out and the staff aren't kept on are they made redundant?

My husband had worked as a mechanic for 23 years and it is the only job he has ever had, but his boss has told him he thinks he has found a buyer for the business. If the new buyer doesn't want to keep my husband on do they HAVE TO make him redundant?

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Yes they have to make him redundant. If the business is sold as a going concern (i.e. not being shut down or liquidated) then the T.U.P.E. regulations apply (transfer of undertaking) which means that your husband's service and terms of employment must be taken on by the new owner.

Bear in mind that it is always the job not the person that is redundant so it doesn't really matter if the new owner wants him or not. The only thing he can consider is whether your husband's job is redundant or not and if he makes him redundant his redundancy entitlement must include his 23 years service. Unless his contract of employment states differently, the statutory entitlement is one week's pay for every complete year of service i.e. 23 weeks pay.

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Other Answers (3)

• I'm not sure what you are trying to say, but usually redundant staff usually happens when one company buys out another, and they end up with two similar departments doing the same job. Most or all of the staff in one department is made redundant, and are let go.
  
  So if the buyer of your husband's employer already has a mechanic, and they feel that he can handle the workload alone, your husband will be redundant. However, if the buyer decides to stop offering the services that your husband supplies, than they can just let your husband go.

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• If the company is sold, all current staff come as part of the package. They can not just be sacked or made redundant.
  
  It is up to the new owner as to whether he keeps on the staff, but he/she has the option of either of offering redundancy which can be very expensive option with so many years service. Sacking, but only due to major incompetence, and after several official warnings. Or the last option of retirement.

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• Even if he worked for 23yrs but his employers who knows how efficient he is can no longer work with him then there is no need of keeping him, becoz the buyers may also have some they had worked with for 30yrs which is not possible to let go.
  
  There is a saying: The devil you know is better than the angel you do not.

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