Contract provider changed ... Redundancy?

callansdad

Hi there,

I have a friend who works for a public body ..... they currently employ this person as a chef.

They have decided to award all catering provision to an outside contract.
They have told the person that they are now to be employed by the new company.

The person was hoping to be made redundant from her current employer as they have worked for them for 20 odd years and would be due a big payoff but tthey have told her NO you will have your contract transferred to the new employer therefore no redundancy.

Is this right? If the catering provider goes belly up or does not want to renew it's contract what will happen to my friend?

BlueIsTheColour

It is correct yes, well from the info you have given it seems that way, under the TUPE regulations, if a company outsources then potentially the existing employees transfer to the new company. These regulations protect the terms and conditions of their existing contract including length of service. Under TUPE the original employer isnt obliged to make employees redundant.

If the catering provider goes belly up, maybe someone else would take over the contract, another TUPe situation, or they would be made redundant by new company based on the 20odd years service, or if they didnt it could be claimed from the Redundancy Payments office.

HTH

getmore4less

In TUPE situations it is important to make sure that any enhanced redunundancies that are contractual are documented, especialy if they are due to custom and practice.

This will not help in the case of the new employer going bust