News / Press
February 2012 - Analysis: Ordinary Ibrox employees may be safer than players
Scotsman - 16 February 2012
Understandably much of the focus on Rangers entering administration has been on what the future holds for the players, but what of the large backroom staff at Ibrox?
Unlike the players, whose contracts are likely to be time-limited, the backroom staff will be on permanent contracts of employment and therefore are protected at least to some degree by government employment legislation, ie TUPE (the Transfer of Undertakings Protection of Employment Regulations 2006).
TUPE kicks in as soon as there is any possibility of a business changing hands – in this case because an administrator has been appointed.
Rangers staff would then transfer to the new owner.
Administration is not analogous to bankruptcy and therefore, by and large, employees should get to keep their jobs in the meantime.
It is, however, open to the administrators to seek to change employment terms to make the business more likely to attract a buyer.
This is permitted under the legislation where “the sole or principal reason for it is the transfer itself or a reason connected with the transfer that is not an economic, technical or organisational reason entailing changes in the workforce” and “it is designed to safeguard employment opportunities by ensuring the survival of the business”.
In other words, the administrators are entitled to look at the remuneration packages and other terms of any of the employees with a view to reducing them and reducing the financial burden.
This means that employees such as grounds and office staff should be protected from dismissal, although it would still be possible for the administrators to make staff redundant if they were able to show there was an economic, technical or organisational reason for this.
Where their jobs could be seriously under threat is if, as many are beginning to fear, Rangers is eventually declared insolvent – as happened to Airdrieonians. In that scenario, however, the employees would be entitled to a statutory redundancy payment.
Therefore, the ordinary men and women behind the scenes at Ibrox could be in a better position than the players. Unlike the players, however, they might find securing another job a lot more difficult.
Dawn Robertson is head of employment at Murray Beith Murray
February 2012 - Spring Seminar Series on Asset Protection
Although the benefits of trusts have been diminished by the general tightening of tax exemptions by various Chancellors over the past decade, experts believe they still have a role to play in personal financial planning.
For this reason trusts will form the core of this year’s spring seminar series on Asset Protection, to be held by Murray Beith Murray. Guest speakers will include Scotsman writer Kirsty McLuckie, who will introduce the idea of using a trust to minimise tax on residential property assets. Protecting family and other small business assets will be addressed by John Hume from Springfords while Mark Christie of Carbon will concentrate on the role of trusts in protecting the death benefit in pension assets.
Peter Shand, partner at Murray Beith Murray, who is providing the legal input on each seminar, said: “These seminars are intended to take a fresh look at asset protection for individuals. With relatively simple tax planning it is possible to come up with some very workable solutions for dealing with larger assets that clients have – including their pensions, property and the family business.”
The seminars will be held in Edinburgh on 22 February and 14 and 28 March.
If you are interested in attending this seminar please contact Gabrielle Coyle on +44 (0)131 220 8842 or email firstname.lastname@example.org