Listed Company - Enhanced Terms after Aquisition?

Wallhart

My Dad is a little nervous about being made redundant so trying to find some info for him.

He has been working for his existing company for 12 years and he has enhanced redundancy terms of a month for every year. This is catagorised by the which of the pension schemes and when he started. Ie recently employed people are on different terms.

His company which publically listed has been acquired.

Reading the information on TUPE it says that it does not cover takeovers which are due to share acquisition. (ie nearly all big aquisitions)

He's worried the new company will make redundancies and if so on their own terms rather than what his current enhanced terms are.

Can someone provide clarity please.

Johno100

But is he working for a new company? The shares in the company he works for may have changed hands and now belong to the other company but his employer and terms of employment won't necessarily have changed.

Wallhart

Well he will be. The group he works for now will be taken over by the aquirer and cease to exist. Well actually you make a good point because I don't know what happens to the legal entity.

Johno100

I take it as its a listed company it won't be a small enterprise. Therefore I'd suggest he inquires with his HR department, either directly or via his union, and clarifies the situation.

Pushkin

He should have a contract from when he originally started work (with initial company) unless he signed a new contract when the company was acquired by the new company then his original t's and c's suffice.

I work for a global outsourcing company and we have people on different terms and conditions because their original contracts (before then TUPE'd to our company) are preferable so they choose not to sign a new contract.

Wallhart

So I had a look through my dad's old contract from when he first joined. It was a bit worn lol.

So in his contract it says 3 months termination notice. I raised this with him and he said that the company has a policy which is on the company internal system which links their redundancy terms to the pension scheme.

He said this is where it says people under his scheme get 4 weeks for every year.

I think this may be discretionary and therefore not contractual. However reading a little more this may cover him under custom and practice but not entirely sure about that.

Even though takeover has been agreed it hasn't completed yet.

AJ1982

As you rightfully say, the legal entity still exists.

Just because it gets a different owner(s) does not change this fact. Furthermore, he may be employed by a child company under the plc.

I would sit tight for now, but in the event of any TUPE to a new company, all rights are protected for at least a year, including all conditions.

sangie595

AJ1982 wrote: »

in the event of any TUPE to a new company, all rights are protected for at least a year, including all conditions.

This is not correct. TUPE protects terms of employment at the point of transfer; and technically there is no time limit on that protection. But in actual fact an employer can begin to make changes immediately by making a case under ETO provisions - and employers rarely lose such arguments in tribunal. There is certainly nothing in legislation or case law that says that protections last for at least a year, or anything other period of time.


If the change is due to share transfer, then TUPE does not apply and in theory everything remains the same. But any employer can change terms. Including the existing employer. They would simply have to follow due process.

Wallhart

So an update.

He has read the info on the internal system and he said he it clearly states the terms are contractual and come under the terms of employment.

However, as you say not sure whether the new company can just rip that up. I wouldn't have thought it's thats simple though.

Told him to just talk to someone and to think about looking for another job. Sure the redundancy money can be great potentially but nothing like having job security.