Signing new employment contract after acquisition

[gmaz]

My US-based company has been acquired by another, and as such I will be required to sign a new employment contract for the new one. We have been told that all benefits and remuneration will be the same, but is there anything I need to look out for in the small print? E.g. things like tenure, as I've been with my current company 14 years and that will affect notice period, redundancy etc.

Anything else?

[Muzzer79]

I would say that, if you and the part of the business you work in are UK-based, your contract transfers under TUPE.

Therefore you don't need to sign a new one.....unless the terms are improved?

[StevieBee]

If you have a pension with the old company, then check what's the arrangements under the new owner as (IIRC), pensions do not fall under the TUPE arrangements.

[coldel]

TUPE doesn't always apply, when Sainsburys acquired Nectar employee contracts were changed and TUPE did not apply. You had to sign the contract or leave the business. The main thing to go for is the continuation of length of service as that will affect any redundancy calculation further down the line (and not being the harbinger of doom but re-orgs are inevitable in any acquisition).

[parabolica]

Muzzer79 said:

I would say that, if you and the part of the business you work in are UK-based, your contract transfers under TUPE.

Therefore you don't need to sign a new one.....unless the terms are improved?

Not uncommon for the new company to harmonize everyone and issue 'their' contracts to the newly acquired employees; but they have to take into account any TUPE provisions and grandfathered terms.

But if the OP's business is still operating under their own name/legal entity then no need for a new contract at this point.

OP has there been any kind of consultation with the workforce about this change? All of this should have been ironed out between the new employer and the nominated employee reps from your current company.

[gmaz]

parabolica said:

OP has there been any kind of consultation with the workforce about this change? All of this should have been ironed out between the new employer and the nominated employee reps from your current company.

Yes, a group meeting and then a 1-2-1 with my manager.