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redundancy - taking over contracts


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hi all, i will try to keep as brief as possible. Myself and 3 colleagues joined a small company 18 months ago. We came from a huge company that went into liquidation. We secured some business from this as it was bought by numerous companies

 

Wind forward to now - all 4 of us are being made redundant as our business unit is not profitable (we have invoices £120k in 8 months + plus "internal" company work which is not charged). At our 1st redundancy meeting the owner said in principle he was happy that we take over these contracts as he has no staff to now deliver the contracts (yearly service or 20 day projects). Now we are talking in detail they are being rather difficult.

 

The main sticking points are on a couple of 20 man day projects. The work is part fullfilled. They are staying as the contract is with them, we should subcontract thru them, they will pay us at a 20% reduced rate. There are many issues with this - what happens if the go bump(v possible), they could delay payment to us and they are taking a fat £2k cut! We prefer a credit note to the client and we will issue a new invoice them.

 

I would apprecite some advise on how we should resolve this. Also, what will happen 1st Jan when we have left and no one is available to deliver the contracts? (the customers are aware we are leaving and are happy to continue with us but we dont want to spoke them) Its hard enough trying to sort a new business/redundancy without them playing hardball....

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Its a contract issue, so you can negotiate anything (reasonable). If they have no staff to deliver, I would ask them to assign the contract to you, and in exchange you can pay them a percentage.

 

I would be very wary to be subcontractors to someone on the verge - your payment may never arrive.

 

Alternatively ask them to find someone else (I doubt many will want to be subbies for an outfit about to go under).

I am not a lawyer, so all my advice is provided on the basis that you will check them with a trained legal professional with legal insurance.:(

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