• Posted

An international company took the decision to close down one of its wholly owned subsidiaries. We advised the company on their restructuring, which involved the transfer of two senior sales people to a joint venture (JV) partly owned by them, and the redundancy of remaining staff.

It was also planned to transfer some stock and client relationships (but not contracts) to the JV. This required careful advice regarding TUPE liabilities in transferring staff and settlement agreements for remaining staff were executed. The agreements included slightly unusual provisions relating to re-affirmation and loyalty bonuses in order to retain staff during the run off period and to facilitate the collection of debts.