Employees bonds after a company is sold
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Join Date: May 2004
Location: Newcastle
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Employees bonds after a company is sold
Hi
I have a question regarding bonds and employees rights.
If a bond is signed with a company which is then sold what happens to the original bond?
I understand TUPE is in place but I believe this is to protect the employee not to enforce a bond. If the nature of the company has changed, the future plans of the new company uncertain, job security therefore uncertain, etc does the original bond still stand? Seems unfair that if job security is threatened as a result of a company being sold that an employee would have to pay to leave to a new more secure job, given that with the new company I would never have agreed to the bond I signed with the previous company.
I wonder if anybody has any info on employee rights in this situation and how binding the original bond is in this case?
I have a question regarding bonds and employees rights.
If a bond is signed with a company which is then sold what happens to the original bond?
I understand TUPE is in place but I believe this is to protect the employee not to enforce a bond. If the nature of the company has changed, the future plans of the new company uncertain, job security therefore uncertain, etc does the original bond still stand? Seems unfair that if job security is threatened as a result of a company being sold that an employee would have to pay to leave to a new more secure job, given that with the new company I would never have agreed to the bond I signed with the previous company.
I wonder if anybody has any info on employee rights in this situation and how binding the original bond is in this case?
Join Date: Jan 2000
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If the company is sold, the contracts with the company will generally still stand (subject to a change of control clause, which typically won't be included in a bond arrangement).
TUPE is generally not an issue for the purchase of the share capital of a company, but is relevant for a trade & assets purchase.
Is your question more geared to what happens if that company goes into administration and then pre-packed?
NOTE: I am not a solicitor!
TUPE is generally not an issue for the purchase of the share capital of a company, but is relevant for a trade & assets purchase.
Is your question more geared to what happens if that company goes into administration and then pre-packed?
NOTE: I am not a solicitor!
