Rate of pay & Company Change?

joe2cool

Hi my wife's workplace has been taken over by a different company. Where does the employee stand with their hourly rate of pay changing in the future? Its remained the same so far, with only new employee's starting on the New rate (which is a lot lower) & new contract. The union as only said it could change if circumstances change?

If you remain on the same contract before the change, will your hourly rate remain the same or is there a time limit?

Thx

Southend1

joe2cool wrote: »

Hi my wife's workplace has been taken over by a different company. Where does the employee stand with their hourly rate of pay changing in the future? Its remained the same so far, with only new employee's starting on the New rate (which is a lot lower) & new contract. The union as only said it could change if circumstances change?

If you remain on the same contract before the change, will your hourly rate remain the same or is there a time limit?

Thx

Her pay can't be reduced for any reason connected to the transfer of ownership. Google TUPE for more info

joe2cool

Thx.....Will do

getmore4less

not all change of ownership are covered by TUPE where it does it only protects at point of transfer.

a change of rate would require your agreement or if forced by terminating the current contract and offering a new one you could challenge it.

Southend1

getmore4less wrote: »

not all change of ownership are covered by TUPE where it does it only protects at point of transfer.

a change of rate would require your agreement or if forced by terminating the current contract and offering a new one you could challenge it.

If the workplace has been taken over by another company it is likely to be a TUPE situation.

I don't think you're quite right about only protecting at the point of transfer, though the new company can seek to change terms of employment for business reasons unconnected to the transfer.

Op's wife's best source of info will be her union as they will be aware of whether TUPE applies and have access to legal advice if needed.

getmore4less

read the regs, not all takeovers are covered by TUPE.

Even where they are it is very easy to construct business reasons for change

Southend1

getmore4less wrote: »

read the regs, not all takeovers are covered by TUPE.

Even where they are it is very easy to construct business reasons for change

Yes I know, TUPE does not apply to:

transfers by share take-over because, when a company's shares are sold to new shareholders, there is no transfer of the business: the same company continues to be the employer
transfer of assets only (eg the sale of equipment alone wouldn't be covered but the sale of a going concern including equipment would be covered)
transfer of a contract to provide goods or services where this doesn't involve the transfer of a business or part of a business
transfers of undertakings situated outside the UK.


Since the workplace has been taken over, that implies a transfer of business rather than just shares. Could possibly be a transfer of assets only I suppose. But as I said, OP's wife should get proper advice.

It may be easy to construct business reasons for change but it may be harder to defend them at tribunal if they aren't genuine. I don't know, I haven't researched this. Again OP's wife will be able to get proper legal advice on this via the union.

joe2cool

Yes it was a TUPE transfer.....thx guys

Southend1

joe2cool wrote: »

Yes it was a TUPE transfer.....thx guys

You're welcome

getmore4less

That clears that bit.
Protection at point of transfer, now they can look at changes to contracts like any other company can.

ETO reasons are easy to make changes or make redundancies.

Recruit a load of cheap people then thin out the expensive ones. Depending on the type of business it may be possible to recruit not long after the redundancies.

Southend1

getmore4less wrote: »

That clears that bit.
Protection at point of transfer, now they can look at changes to contracts like any other company can.

ETO reasons are easy to make changes or make redundancies.

Recruit a load of cheap people then thin out the expensive ones. Depending on the type of business it may be possible to recruit not long after the redundancies.

As far as I can see if there isn't a change to the number of employees required for an ETO reason the tribunal will likely find that the change wouldn't have occurred if it weren't for the transfer and therefore TUPE protection will apply.

Example here: http://www.rawlisonbutler.com/news/tupe-trouble-time-is-not-the-great-healer

And more info here http://www.thompsons.law.co.uk/ltext/l0240004.htm