Question from Sajjad Junaidi ([email protected])
We are in process of acquiring a business and to make it profitable the vendor has offered redundancies to two of their staff. We planned to hire all other 8 staff members with same terms and conditions of employment. It just happened that two of these 8 staff are under old Superannuation Scheme of Defined Benefits. As we were unable to offer similar DB to them, it has triggered a redundancy and vendor is willing to pay them out as well.
Both of these staff members are critical to our ongoing operations and we would like to hire them on normal Superannuation accumulation scheme. Vendor is clearly aware of the fact that we would like to hire them. One of these two staff members is also critical for us to transfer over the accreditation of the business.
We would like to know:
– Can we make them an offer before the settlement/transfer of the business?
– Can they accept the offer before the settlement?
– Will their acceptance have any adverse effect on their redundancy payout?
We are in a bit of catch 22 here, if we don’t have that critical staff signed up now, transfer of accreditation may be an issue. And if we don’t have the transfer of accreditation we can’t complete the settlement of business.
Your advice on this matter will be greatly appreciated. We are looking forward to hear back from you as soon as possible.
Unfortunately, it is beyond the scope of the Help Desk service to provide legal advice.
Should you wish for specific advice on this query, Hannah Dunai, Senior Associate at Holding Redlich is available on a commercial basis at [email protected]