Client wants to "Buy" my husband

DevilsAdvocate1

Hi,

My husband has worked for company XXX for nearly 17 years. Part of the company supply staff members to a client company, who I'll call ABC.

Apart from a 6 month break around 12 years ago, my husband has always worked for client ABC. So he is employed by and is paid by company XXX, but his day to day dealings are with client ABC. He does the same work as other ABC employees, but is effectively employed via a third party. He is not a contractor, but an employee.

Client ABC have decided not to renew their contract next November. However, they are keen to retain the expertise and knowledge of the staff who have been working for them. They want the staff to transfer to them and to work directly for them. Company XXX don't really want to deal with staff augmentation any more as this is not their core business, so I think they are quite happy to get rid of this.

I'm just wondering if anyone knows what sort of things we should be asking. There has been talk of a transfer fee. When the last round of redundancies took place, we worked it out that it would be over £20,000 that my husband would have received had he taken it (it was enhanced and voluntary). I am presuming that they could not use Tupe as he is not being made redundant but being "sold" to the client.

Think this is probably an unusual situation. I want to get as much information as I can over the next few months so I know where he stands. Any pointers to websites would be helpful too.

Thanks, Mandy.

mgdavid

As his current employer don't seem to object can he get that in writing in case they change their mind? Sounds like he's in a good bargaining position; you could try googling 'golden handshake'.

Takeaway_Addict

How long would it cost to retrain someone up to your husbands standard because unless the business is very lucrative I can't see the new company paying a £20k hand shake.

They might feel that it would only cost 5k to train someone up.

Your current company might also feel that actually rather than pay 20k they could find an alternative suitable job and save some money.

If you move the one thing I would suggest you look at getting into the contract is the continuity of service. Your husband has 12 years so this should be the point that the new company start so if they ever want to make him redundant its 12 years plus X.

DevilsAdvocate1

Takeaway_Addict wrote: »

How long would it cost to retrain someone up to your husbands standard because unless the business is very lucrative I can't see the new company paying a £20k hand shake.

They might feel that it would only cost 5k to train someone up.

Your current company might also feel that actually rather than pay 20k they could find an alternative suitable job and save some money.

If you move the one thing I would suggest you look at getting into the contract is the continuity of service. Your husband has 12 years so this should be the point that the new company start so if they ever want to make him redundant its 12 years plus X.

Thanks for your replies.

I don't think its quite as simple as training someone up. Its the years of experience and knowledge of several areas of the business that the client are keen to retain. They have approached my husband directly twice in the last 12 months, asking him to move to them, but legally its a bit dodgy. Also they wanted my husband to relocate to where their main office is, which is at the other end of the country to us. Perhaps as they haven't got him directly, this is another way to get him as an employee?

They even gave my husband a £10K bonus a few years ago on condition that he didn't look for another job for a set period of time. So I don't think money is an issue. But I do think he should retain the years of service he has built up, but not sure if this is possible.

There has been some discussion that my husband could continue working from home after the transfer and this would be fine, but he couldn't relocate. I have elderly parents and two of our children are doing GCSE and "A" Levels, so couldn't move. Not sure whether this could be written into the new contract or how it would work.

Another_not_new_user

DevilsAdvocate1 wrote: »

They have approached my husband directly twice in the last 12 months, asking him to move to them, but legally its a bit dodgy.

.

Why do you think that?

DevilsAdvocate1

Another_not_new_user wrote: »

Why do you think that?

Because the contract between his employer XXX and the client ABC prohibits them from poaching the employees. May not be any comeback on my husband though.

katsu

They are taking a service in house from X co. Sounds like TUPE to me. Not sure why he thinks it isn't?

jm2926

Surely TUPE would apply? I have been through this twice, first time the employer decided to outsource to a 3rd party, so TUPE'd to the supplier retaining length of service and T&C. Second time when that contract ended TUPE'd back to the original employer. The job still exists, just the employer changes. The whole point of TUPE is to protect employees in these circumstances. Nothing should change except the name on the payslip.

DevilsAdvocate1

katsu wrote: »

They are taking a service in house from X co. Sounds like TUPE to me. Not sure why he thinks it isn't?

Thanks again for all the replies.

I always thought TUPE was when a whole company was taken over, not a couple of employees (DH is not the only one affected).

Will look into TUPE.

getmore4less

When whole companies are taken over that is often a case where TUPE does not apply.

TUPE would be a solution(and may apply anyway) if XXX don't want the people that work for ABC and ABC are happy to take over the liability that comes with service.

DevilsAdvocate1

I suspect that company XXX will want to be compensated in some way if the staff move to company ABC. But I guess that has nothing to do with us.

We just know negotiations are underway (and we're not really supposed to know, my husband only found about by chance). He feels really awkward because non of the others who will be affected know yet, but he has been told its confidential and he's not to say anything.

I just want to make sure we are protected and know what the position is, so when it comes out into the open we know what question to ask and what is and is not possible.