Cash/Car allowance under TUPE agreement

k33shr

Hi All

Just needed some advice really

I am currently employed and part of my salary is that I have a car which is a benefit, this is under a leasing scheme which will expire in March 2010 and possibly will get a cash allowance

Now I may be tupeed over in July 2010 and was wondering whether or not, under the TUPE agreement, will I lose this cash allowance or will the new employer have to honour this

this is what my primary concern is, if I lose it then that will mean I will have less salary each month and thus running a car at my own expense

your advice is much appreciated

K33shr

Pete111

With TUPE They should honour all current contractual arrangements - this includes benefits such as a car.

I assume your car is include in your contract or a subsequent side letter? If it is not make sure you get this or that the new car allowance in March is fully documented.

Anihilator

Companies can however change contracts normally with notice period and remove entitlement to cars etc or at least remove private usage etc.

The fact your asking the question suggests to me it is an inefficient benefit for the company and may be on its way out so you should probably prepare for this.

k33shr

Hi

thanks for the response

Currently the car policy is in fact a leasing scheme, but the policy has changed, instead of a car, we would be given a cash allowance.

Come in July, I will have no car BUT I will have the allowance, this should be honoured obviously?

K

scooterchick

The only thing that Tupe doesn't cover is your pension, all other T&C's should be protected at the point of transfer. However they are instantly entitled to start negotiating contract changes with you, although you have to agree to the changes before they can legally enforce them. Hope this helps.