Redundancy terms changed then made redundant
Discussion
The company I work for changed hands at Christmas, although the original firm still retains a majority stake in the new firm (my terms of service continued). We went through TUPE etc. Two weeks ago an email was sent round saying redundancy terms have changed. It turns out our enhanced package of two-and-a-half weeks' pay for every year of employment has been replaced by the non-enhanced Government minimum, which I believe is one week for every year you've been there (capped at a weekly rate well below what I earn). On Friday I was placed into consultation and am sure to lose my job in 30 days' time - along with several others. I've been there 18 years and, to be honest, I'm a bit miffed. Is there anything I can do - any way I can challenge it so I come away with a bit more of a financial cushion? Is there anything else I should be asking for? Thanks in advance.
Breadvan will be along shortly I imagine, with adult serious advice.
My feeling is, if the terms of your redundancy were agreed during the TUPE process. (IE if your contract in your last employer stated two and half weeks, and that was continued via TUPE) then the last change may be open to challenge.
I would seek profession advice.
Addiitionally as you are in a consultation. The company must have appointed someone with whom you can consult. So speak to them too
My feeling is, if the terms of your redundancy were agreed during the TUPE process. (IE if your contract in your last employer stated two and half weeks, and that was continued via TUPE) then the last change may be open to challenge.
I would seek profession advice.
Addiitionally as you are in a consultation. The company must have appointed someone with whom you can consult. So speak to them too
A quick Google reveals:
There is no time limit on when your new employer can change the terms and conditions of your contract of employment by agreement with you. However, even if you agree to any changes with the new employer, if they are connected with the TUPE transfer then they may be void.
Following a TUPE transfer, many employers wish to harmonise the contracts of the employees they take on with the contracts of their existing employees. However, if the only reason for this is to bring the transferred employees’ terms into line with existing employees, this is likely to be connected with the TUPE transfer even if made some time (even years) after the transfer. As such, changes might be void even if they are agreed.
There is no time limit on when your new employer can change the terms and conditions of your contract of employment by agreement with you. However, even if you agree to any changes with the new employer, if they are connected with the TUPE transfer then they may be void.
Following a TUPE transfer, many employers wish to harmonise the contracts of the employees they take on with the contracts of their existing employees. However, if the only reason for this is to bring the transferred employees’ terms into line with existing employees, this is likely to be connected with the TUPE transfer even if made some time (even years) after the transfer. As such, changes might be void even if they are agreed.
It is extremely unlikely that redundancy terms are part of your T&Cs. Of course it is possible but I have never seen it and it would be a strange thing to put in there. Not only that but companies don't usually have set redundancy terms, they just have the ones they may have used in the past but there is no need for them to use the same ones in the future so long as what they do use are at least the statutory minimum.
WhereamI said:
It is extremely unlikely that redundancy terms are part of your T&Cs. Of course it is possible but I have never seen it and it would be a strange thing to put in there. Not only that but companies don't usually have set redundancy terms, they just have the ones they may have used in the past but there is no need for them to use the same ones in the future so long as what they do use are at least the statutory minimum.
Depends on the company - I've had redundancy terms in my contract more than once before, especially when they are beyond the statutory minimums. Slurms said:
Depends on the company - I've had redundancy terms in my contract more than once before, especially when they are beyond the statutory minimums.
It's certainly possible and maybe more prevalent than I think although I've looked at a lot of employment contracts in my time. But the point is that changing the terms is very likely to not be a change to T&Cs WhereamI said:
Slurms said:
Depends on the company - I've had redundancy terms in my contract more than once before, especially when they are beyond the statutory minimums.
It's certainly possible and maybe more prevalent than I think although I've looked at a lot of employment contracts in my time. But the point is that changing the terms is very likely to not be a change to T&Cs edc said:
WhereamI said:
Slurms said:
Depends on the company - I've had redundancy terms in my contract more than once before, especially when they are beyond the statutory minimums.
It's certainly possible and maybe more prevalent than I think although I've looked at a lot of employment contracts in my time. But the point is that changing the terms is very likely to not be a change to T&Cs WhereamI said:
edc said:
WhereamI said:
Slurms said:
Depends on the company - I've had redundancy terms in my contract more than once before, especially when they are beyond the statutory minimums.
It's certainly possible and maybe more prevalent than I think although I've looked at a lot of employment contracts in my time. But the point is that changing the terms is very likely to not be a change to T&Cs The opening post is ambiguous. A change in company ownership is not covered by TUPE. Has the business moved from one entity to another?
If this was a TUPE Transfer of a business from one company to another, then the purported change in the contract is ineffective. The old redundancy terms are protected by the TUPE Regulations. As noted above, write to record that you do not accept the new terms, and expect the company to honour the terms of your contract including the contractual redundancy element.
BUT, if all that happened was that the same company changed hands, there was no TUPE transfe. A company can compel a change in the the terms of the contract and can defend a constructive dismissal claim arising from a forced change if it has a genuine business need for the change.
If, however, the company is simply proposing to impose redundancy and not honour the old contract, the employee has an argument that the contract has not been changed, and the company is in breach of contract.
If this was a TUPE Transfer of a business from one company to another, then the purported change in the contract is ineffective. The old redundancy terms are protected by the TUPE Regulations. As noted above, write to record that you do not accept the new terms, and expect the company to honour the terms of your contract including the contractual redundancy element.
BUT, if all that happened was that the same company changed hands, there was no TUPE transfe. A company can compel a change in the the terms of the contract and can defend a constructive dismissal claim arising from a forced change if it has a genuine business need for the change.
If, however, the company is simply proposing to impose redundancy and not honour the old contract, the employee has an argument that the contract has not been changed, and the company is in breach of contract.
Edited by anonymous-user on Wednesday 12th June 15:34
[quote=Breadvan72
If this was a TUPE Transfer of a business from one company to another, then the purported change in the contract is ineffective. The old redundancy terms are protected by the TUPE Regulations. As noted above, write to record that you do not accept the new terms, and expect the company to honour the terms of your contract including the contractual redundancy element.
[/quote]
But that's assuming that there was a contractual redundancy element, as I see it we havent established whether the redudancy terms are contractual.
If this was a TUPE Transfer of a business from one company to another, then the purported change in the contract is ineffective. The old redundancy terms are protected by the TUPE Regulations. As noted above, write to record that you do not accept the new terms, and expect the company to honour the terms of your contract including the contractual redundancy element.
[/quote]
But that's assuming that there was a contractual redundancy element, as I see it we havent established whether the redudancy terms are contractual.
Thanks so much for all your replies and advice. We definitely went through TUPE, completing on January 1 this year.
Here's a note from my MD sent early May explaining what was going to happen:
"As part of the process of bringing together COMPANY NAME and ANOTHER COMPANY NAME, it has been necessary to harmonise all employment policies and procedures and I am writing to advise you that the following policies will be available for downloading on our intranet within the next 48 hours.
· Disciplinary Procedure
· Grievance Procedure
· Equal Opportunities Procedure
· Redundancy Procedure
You should also note that, with immediate effect, the company are introducing the attached NEW COMPANY NAME sick pay policy. This will replace the former COMPANY and ANOTHER COMPANY NAME. This policy will also be live on the intranet within the next 48 hours.
Can I also remind you that all of the above policies and procedures represent a statement of our practice and they do not form part of your terms and conditions of employment.
You should also note that work is continuing on the harmonisation of other non-contractual policies and procedures and once this work is completed you will be advised before they are uploaded onto the intranet."
The new policies and procedures were uploaded on May 15, 2013. Hope this makes things a little clearer.
Here's a note from my MD sent early May explaining what was going to happen:
"As part of the process of bringing together COMPANY NAME and ANOTHER COMPANY NAME, it has been necessary to harmonise all employment policies and procedures and I am writing to advise you that the following policies will be available for downloading on our intranet within the next 48 hours.
· Disciplinary Procedure
· Grievance Procedure
· Equal Opportunities Procedure
· Redundancy Procedure
You should also note that, with immediate effect, the company are introducing the attached NEW COMPANY NAME sick pay policy. This will replace the former COMPANY and ANOTHER COMPANY NAME. This policy will also be live on the intranet within the next 48 hours.
Can I also remind you that all of the above policies and procedures represent a statement of our practice and they do not form part of your terms and conditions of employment.
You should also note that work is continuing on the harmonisation of other non-contractual policies and procedures and once this work is completed you will be advised before they are uploaded onto the intranet."
The new policies and procedures were uploaded on May 15, 2013. Hope this makes things a little clearer.
Also, forgot to add, the enhanced redundancy payment from the previous company was not written into my contract. The new company's HR adviser, during the first consultation meeting, said the firm has only ever offered the statutory government minimum but given different enhancement for some individuals. However, this is not the case, and everyone who has been made redundant in the last 5 yeasr, to my knowledge, has received two-and-a-half weeks for every year worked - including my wife 10 years ago!
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