Are bonuses included in the contract protected after TUPE?

NOVAMET21

After TUPE transfer, the employees terms and conditions are protected such as basic salary and working hours.

Are bonuses that are included in the contract protected as well?

For e.g. a basic salary of £x and annual KPI bonus of £x is written in the contract.

Thrugelmir

Will the KPI even exist as a measurement in the new set-up?  Does your new employer operate a different bonus scheme? 

Grumpy_chap

NOVAMET21 said:

After TUPE transfer, the employees terms and conditions are protected such as basic salary and working hours.

Are bonuses that are included in the contract protected as well?

For e.g. a basic salary of £x and annual KPI bonus of £x is written in the contract.

One way or another, if the market rate for the job is £x plus £y bonus = £z total, then the £z total has to be broadly maintained as without that the employer will lose staff to competitors (and quite often the best staff will be the first to be moving on).  Whatever the acquisition looks like, the acquiring organisation won't want to lose all the best staff.

If the one organisation achieves market rate £z through an £x plus £y approach and the second organisation has a different structure (maybe just paying £z) then there may be a necessary step to bring the two approaches into one format otherwise the ongoing administration will become ever more complex and drive resentment between different groups within the business.  How the business brings the two approaches together can vary.

Thrugelmir

Grumpy_chap said:

NOVAMET21 said:

After TUPE transfer, the employees terms and conditions are protected such as basic salary and working hours.

Are bonuses that are included in the contract protected as well?

For e.g. a basic salary of £x and annual KPI bonus of £x is written in the contract.

One way or another, if the market rate for the job is £x plus £y bonus = £z total, then the £z total has to be broadly maintained as without that the employer will lose staff to competitors (and quite often the best staff will be the first to be moving on).  Whatever the acquisition looks like, the acquiring organisation won't want to lose all the best staff.

If the one organisation achieves market rate £z through an £x plus £y approach and the second organisation has a different structure (maybe just paying £z) then there may be a necessary step to bring the two approaches into one format otherwise the ongoing administration will become ever more complex and drive resentment between different groups within the business.  How the business brings the two approaches together can vary.

Bonuses are far from guaranteed though as dependent upon achieving the performance measurement. 

Andy_L

"Under TUPE, the new employer takes over employees’ employment contracts, including:

• all the previous terms and conditions of employment"

https://www.gov.uk/transfers-takeovers/transfers-of-employment-contracts

getmore4less

First pay rise all bets are off.

The employer can change anything they like along with the rise.