What happens to your employment contract if your employer is taken over and how might this impact a dispute? Lydia Wawiye has the lowdown
The Question
The company I work for was taken over three years ago – I have worked there for a total of 17 years. The terms and conditions were protected by something called TUPE.
I am now in dispute with the company over my contract terms, but I haven’t got a copy of the old contract what is your advice and where do I stand?
Lydia’s Answer
TUPE, or the Transfer of Undertaking (Protection of Employment) Regulations 2006, aims to protect your rights as an employee in the event you transfer to a new employer.
Employees who transfer to a new employer under TUPE do so on their pre-existing terms and conditions and with their continuous employment preserved.
Generally, after a TUPE transfer, changes to employment terms and conditions typically require employment consent. If your employer wants to change your terms and conditions, they will need a valid reason for the change that is unrelated to the transfer.
Your new employer may choose to ‘harmonise’ your terms and conditions and bring them in line with those of existing employees following a transfer. They can only do this if it improves your terms and conditions. Your terms and conditions cannot be changed to something worse than before, unless your new employer has a valid economical, technical or organisational reason (ETO reason) relating to changes in the work force, and you both agree to the change.
Examples of an ETO reason are:
- Essential cost saving requirements (economic reason)
- Using new processes or equipment has reduced the need for staff (technical reason)
- Restructuring (organisational reason)
By law, your previous employer must provide your new employer with specific information about you. This is known as employee liability information (ELI) and must be provided at least 28 days before the transfer. This includes:
- your identity
- your age
- terms and conditions of employment
- any disciplinary and grievance records, or ongoing cases, within the last 2 years
- details of any relevant collective agreements in place that will affect the transfer
- any claims related to your employment that you have made against your current employer within the last two years or that they reasonably believe you may make against the new employer when you transfer
Your current employer should have received your contract of employment, and you can request a copy.
Lydia Wawiye is an employment law solicitor at Parfitt Cresswell
Lydia has over 13 years of Post-Qualified Experience (PQE) and currently spearheading the Litigation Department at Parfitt Cresswell’s Uckfield Office.
Lydia’s expertise encompasses a diverse array of litigation fields, including property disputes, landlord and tenant conflicts (both commercial and residential), contentious probate, TOLATA (Trusts of Land and Appointment of Trustees Acts), professional negligence, consumer credit, construction disputes, as well as employment and contractual conflicts.
Read Lydia’s profile here. If you would like to ask Lydia or one of her colleagues at Parfitt Cresswell a legal question connected to your home or related finances email kate.saines@emap.com
