STAFF THAT COME WITH THE BUSINESS

Employee rights

When a business is transferred, employees’ rights are protected under the Transfer of Undertakings (Protection of Employment) Regulations 1981 (TUPE). This means that their terms and conditions must remain the same as they were prior to the transfer and their continuous employment period is preserved.

When you acquire your pub, its staff transfer with the business and you become legally responsible for them. Their employment with you does not count as new employment. Dismissing staff or changing their terms and conditions risk legal consequences. For example, if, because of the transfer, you dismiss an employee who has one year’s employment or more, they can automatically claim to have been unfairly dismissed. If you change an employee’s terms and conditions because of the transfer, and the employee is compelled to resign as a consequence, they may have a right to claim that they were constructively dismissed.

Your right to make changes

As an employer, you have a right to dismiss staff if there is an economic, technical or organisational (ETO) reason which necessitates changes to the workforce. Then you may be able to dismiss fairly, provided you have followed the correct procedure. In practice, ETO reasons are narrow and you should seek legal advice before dismissing staff on these grounds. If you do dismiss staff for such reasons you will be required to make them redundant and follow the correct redundancy procedures.

Employee morale

Employee morale is often affected when a business is transferred. When you acquire your pub, its staff may be anxious and uncertain about their future. It is good practice to meet with staff as soon as possible after you have taken over, or even prior to taking over, with the permission of the outgoing licensee. Either way, it is essential to make sure that staff are reassured and understand your plans for the business. Good morale is important and communication plays a vital part in developing and maintaining it.

Be prepared for staff leaving

Sometimes you will find that members of staff decide to leave when you take over, despite your reassurances and positive plans for the future. Speaking to staff prior to taking over may help you identify employees that are not planning to stay with you long-term, but occasionally employees leave even though they have said they will not. This is more of a problem when the employee is a key member of staff such as a cook, chef or senior bar staff. You need to be prepared for this eventuality and have thought about how you will replace them at short notice if necessary.