Potential TUPE transfer... what can then happen?
Discussion
I work for a company who is selling a large, but still minority share of one half of the business to a competitor.
I work in a small team, where half of us will remain working for the existing business and the other half will go to the new JV that will be formed.
Given that my background is more closely related to that of the JV business, I can see myself being moved that way.
To further confuse things, written into the contract is that the company purchasing the share will purchase another chunk in a couple of years time, meaning they will have circa 70% share.
I know that under TUPE my contractual benefits will be carried over, but my query is, what can happen down the line? Current employer is stating that there is no intention to change anything at the moment (as you would expect...)
I believe they can renegotiate with all the employees being transferred? Perhaps down the line a little.
My main concern is that my current benefits are significantly better, private medical, much higher life insurance multiple and income protection insurance and that these may at risk down the line.
I work in a small team, where half of us will remain working for the existing business and the other half will go to the new JV that will be formed.
Given that my background is more closely related to that of the JV business, I can see myself being moved that way.
To further confuse things, written into the contract is that the company purchasing the share will purchase another chunk in a couple of years time, meaning they will have circa 70% share.
I know that under TUPE my contractual benefits will be carried over, but my query is, what can happen down the line? Current employer is stating that there is no intention to change anything at the moment (as you would expect...)
I believe they can renegotiate with all the employees being transferred? Perhaps down the line a little.
My main concern is that my current benefits are significantly better, private medical, much higher life insurance multiple and income protection insurance and that these may at risk down the line.
Edited by Miocene on Sunday 15th October 23:12
If all that is happening is a sale of shares in a limited company, there will be no transfer of undertaking. If there is a transfer of part of the undertaking to a separate legal entity, then if you are assigned to the part transferred then your employment will transfer to the separate entity.
I reiterate: a change in the ownership of the legal entity that operates a business is not a transfer of undertaking. You need to check what is actually happening.
Changes to terms and conditions after a transfer of undertaking (if there is one) can give rise to dismissal or create grounds for constructive dismissal, and need to be justified by economic, technical or organisational reasons that entail a change in the workforce if the dismissal is to be fair.
I reiterate: a change in the ownership of the legal entity that operates a business is not a transfer of undertaking. You need to check what is actually happening.
Changes to terms and conditions after a transfer of undertaking (if there is one) can give rise to dismissal or create grounds for constructive dismissal, and need to be justified by economic, technical or organisational reasons that entail a change in the workforce if the dismissal is to be fair.
Edited by anonymous-user on Monday 16th October 08:28
I've been through TUPE twice, and both times my T&Cs changed very soon afterwards to "align" everybodys packages.
The first time, I lost several benefits. Some were material, and the company increased base salary which accounted for some of it but I was definitely worse off. They also removed some working condition benefits.
The second time (different company) I was happy with the new benefits since they were better for me - but some other employees lost some benefits they thought were very important, and although they argued hard eventually agreed.
The problem with TUPE in my experience, is that it's lovely that it says things should stay the same - but unless it's very easy to get another job, most people will buckle when the arguments start getting serious. I argued pretty hard the first time it happened to me, and I know for a fact that the new company HR mailed our existing HR to enquire whether I was a "valuable employee".
The first time, I lost several benefits. Some were material, and the company increased base salary which accounted for some of it but I was definitely worse off. They also removed some working condition benefits.
The second time (different company) I was happy with the new benefits since they were better for me - but some other employees lost some benefits they thought were very important, and although they argued hard eventually agreed.
The problem with TUPE in my experience, is that it's lovely that it says things should stay the same - but unless it's very easy to get another job, most people will buckle when the arguments start getting serious. I argued pretty hard the first time it happened to me, and I know for a fact that the new company HR mailed our existing HR to enquire whether I was a "valuable employee".
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