Employer becoming Limited Company

Andystriker

Hi all,

Where I work my employers are to change into a Limited Company.

They have told me that this involves making the staff redundant (P45's etc) and then re-employed by the new Limited Company.

My question if anyone knows please-

Would this affect any future redundancy entitlement? My employer says that we would not be entitled to redundancy pay now, but the full period of employment with the non limited company would be taken into consideration in any future redundancy. I have been employed with the same company for 20 years now, so I would like to be sure.

Many thanks for any help.

Andy

hcb42

have they mentioned tupe transfer?

ohreally

Andystriker wrote: »

They have told me that this involves making the staff redundant

Andystriker wrote: »

My employer says that we would not be entitled to redundancy pay now

This makes no sense. You need to sit down with them and request clarification over what exactly they plan to do and how this is to be implemented.

Its either a redundancy situation or its not.

Andystriker

hcb42 wrote: »

have they mentioned tupe transfer?

No.

Should I mention it to them, and what is it?

What should I ask for?

Thanks for reply

Andystriker

ohreally wrote: »

This makes no sense. You need to sit down with them and request clarification over what exactly they plan to do and how this is to be implemented.

Its either a redundancy situation or its not.

They say they are changing the company into a Limited company and to do this they have to start up a new company and the old company is no more. So the old company closes and gives all its staff P45's but the new company immediately takes on all the existing employees. So we are not losing our jobs.

Would our current redundancy entitlement remain. For example if I got made redundant in 12 months would I still be entitled to my 20+ years redundancy pay.

My employers say I would but does everyone agree?

DVardysShadow

Write and ask them to confirm in writing that your employment is being transferred under TUPE and that all service and terms and conditions will be preserved. Keep the response carefully for the remainder of your employment.

getzls

You will be getting a new/up-dated contract i assume. Will your pay be the same or reduced?

zzzLazyDaisy

This is not a redundancy situation. It is a TUPE transfer.

Basically your employment passes from company A to company B with all your terms and conditions intact, including length of service.

Yes a P45 is raised, but this is for HMRC purposes because the name and identity of the employer has changed from company A to company B. But that is why TUPE exists, to bridge that gap and protect your employment rights.

LittleVoice

zzzLazyDaisy wrote: »

This is not a redundancy situation. It is a TUPE transfer.

Basically your employment passes from company A to company B with all your terms and conditions intact, including length of service.

Yes a P45 is raised, but this is for HMRC purposes because the name and identity of the employer has changed from company A to company B. But that is why TUPE exists, to bridge that gap and protect your employment rights.

To add further that the new company should provide you with written details of your employment, one of the important things for you being the date that continuous employment began.

KiKi

Andystriker wrote: »

They have told me that this involves making the staff redundant (P45's etc) and then re-employed by the new Limited Company.

As others have said, this is incorrect. They are not making you redundant at all. What they are doing is transferring your employment from one company to another - and this is called a 'TUPE' transfer, aka Transfer of Undertakings (Protection of Employment). What this means is that all your current terms and conditions simply move from one company to another - and this would include your length of service.

If they are making you redundant, then they have to pay you redundancy. However, your job - from what you say - is not redundant, as the new company will continue to do the same work, and therefore your job still exists.

You need to tell your employer that as they are doing a direct transfer they have to, by law, use TUPE (pronounced 'choopee') to transfer you. If they made you redundant and re-employed you then you have NO protection for your length of service at all. Or anything for that matter. They may fully intend to protect you, but you don't have it in law. (Of course, in making you redundant and re-employing you in the same role they would be acting unlawfully in the first place, but that's a whole other point).

Read up on TUPE here: http://www.direct.gov.uk/en/Employment/Employees/BusinessTransfersandtakeovers/index.htm

KiKi

DVardysShadow

KiKi wrote: »

TUPE (pronounced 'choopee')

Reminds me, we still have not settled whether 'tomato' is pronounced "chomarto" or "chomayto"