The local school cannot do this - TUPE applies in this situation (Transfer of Undertakings - Protection of Employment). Just refer the situation to the local education authority - they will have to find someone who understands employment law in there. Under TUPE, continuity of length of service is part of the responsibility they are taking on. Are any of these staff pensionable under their present employment with you? - this can get messy and may have to involve the Government Actuary Dept, because the new employer has to take on the pension responsibility as well.