Transferring to new company

[sdyson31]

Hi,

Yesterday my company made an announcement that our majority of IT stuff will be looked after by third party vendor who is a Indian based multinational company.

I will have one to one with my manager in few weeks time and i will fall in one of the following categories;

- Staying with current company
- Move to new company
- Lose my job

I have been working for a company for over 3 yrs now and i prefer to stay here.

If i move to other company then would my contract stay same? I mean would i be on same salary ? I don't think new company will offer me same amount of pension and other perks.

[kiethton]

sdyson31 said:

Hi,

Yesterday my company made an announcement that our majority of IT stuff will be looked after by third party vendor who is a Indian based multinational company.

I will have one to one with my manager in few weeks time and i will fall in one of the following categories;

- Staying with current company
- Move to new company
- Lose my job

I have been working for a company for over 3 yrs now and i prefer to stay here.

If i move to other company then would my contract stay same? I mean would i be on same salary ? I don't think new company will offer me same amount of pension and other perks.

Our more learned legal friends will hopefully be coming along shortly but in short:

Stay = nothing changes
Transferred = Would be done under TUPE and all current conditions would need be respected - your contract stays the same and in effect, just the name of employer changes. Depending on where you are/relative salary/perks the rate of pay rises may slow as they try to realign you to their normal cost bases, or if sales, targets on which bonuses are based may become somewhat achievable....ask me how i know....
Lose job = standard redundancy terms as a base with potential for enhancement depending on the mood of the current employer

[walamai]

There are lots of things which would influence which of those three options end up happening. Impossible to speculate really.

However, if you move to the new company then you would very likely fall within the TUPE regulations - which essentially mean you would be entitled to keep all your existing salary, benefits pension etc.

https://www.gov.uk/transfers-takeovers/transfers-o...

[sdyson31]

kiethton said:

Our more learned legal friends will hopefully be coming along shortly but in short:

Stay = nothing changes
Transferred = Would be done under TUPE and all current conditions would need be respected - your contract stays the same and in effect, just the name of employer changes. Depending on where you are/relative salary/perks the rate of pay rises may slow as they try to realign you to their normal cost bases, or if sales, targets on which bonuses are based may become somewhat achievable....ask me how i know....
Lose job = standard redundancy terms as a base with potential for enhancement depending on the mood of the current employer

Just looking at new company's review on glass door, i think they won't be able to offer me the salary i am on right now. Looks like they don't offer pay raise at all.

There was one interesting review, the same company changed the contract and he took them to employment bureau and lost the case.

[sdyson31]

walamai said:

There are lots of things which would influence which of those three options end up happening. Impossible to speculate really.

However, if you move to the new company then you would very likely fall within the TUPE regulations - which essentially mean you would be entitled to keep all your existing salary, benefits pension etc.

https://www.gov.uk/transfers-takeovers/transfers-o...

Thanks for the link, very helpful.

This is interesting. As per the link;

After the transfer
The new employer can’t change an employee’s terms and conditions if the reason is the transfer itself.

The new employer can change an employee’s terms and conditions if the reason is an ‘economic, technical or organisational reason’ (ETO) involving changes in the workforce or workplace, such as a result of redundancies or a move from a managerial to a non-managerial position. The employee needs to agree to this change.

‘Economic’ reasons are to do with how the company is performing.

‘Technical’ reasons are to do with the equipment or processes the company uses.

‘Organisational’ reasons are to do with the structure of the company.

[vaud]

OK, so your IT has been "outsourced", I'm guessing to TCS, Wipro or Infosys.

Cost will likely be a major driver. Their internal business case will (likely) have a target of 70-80% offshore delivery over time; for some delivery functions in IT it will be 100%.

Some people make a career post transfer - these companies do have a strong "onshore" function and are growing - these roles tends to be sales, solution architecture, bid functions, account management, service delivery, etc and some of the newer service design/digital services rather than any "heavy lift" IT delivery.

So it may just come down to who is making you redundant - your company or the new company post transfer. Generally service providers prefer that the original employer does it as they don't like having to carry the employment liability of onshore staff.