Insolvency Specialists Criticise Jobs Legislation
Griffiths, Katherine, The Independent (London, England)
HUNDREDS OF struggling UK businesses are forced to wind down instead of being sold because potential buyers are put off by onerous employment laws which forces new owners to take on liabilities such as paying compensation for redundancies enforced by the previous management.
That was the warning of one of the UK's largest insolvency specialists, Begbies Traynor, which yesterday called on the Government to reduce the financial burden of the buyers of businesses in distress. Nick Hood, a partner at Begbies Traynor, said: "I was trying to rescue a business in the East End of London which had been around since 1929. It was a perfectly good business but I was completely unable to sell it because of the rights which had accrued to its staff over the years. This is happening month in and month out to me and my colleagues."
The source of the problem, according to the firm, is the Transfer of Undertakings Protection of Employment (TUPE). …
Questia, a part of Gale, Cengage Learning. www.questia.com
Publication information: Article title: Insolvency Specialists Criticise Jobs Legislation. Contributors: Griffiths, Katherine - Author. Newspaper title: The Independent (London, England). Publication date: July 4, 2003. Page number: 19. © 2009 The Independent - London. Provided by ProQuest LLC. All Rights Reserved.