If the business you work for changes from one owner to another, you need to know how it will affect you. Find out what it means for you if there's a transfer of the business to a new employer and your employer's responsibilities to consult you.
Your terms and conditions are protected under the Transfer of Undertakings (Protection of Employment) Regulations 2006, known as 'TUPE'. The Service Provision Change Regulations (Northern Ireland) 2006 change the existing terms and conditions of your contract of employment and will transfer automatically to your new employer.
This means that you will normally carry on working for the new employer as before. If the new employer refuses to meet the terms of your contract, this will amount to a breach of contract.
Other employment rights as well as your terms and conditions are protected. These include any holiday you've built up and any outstanding claims you've made against the original employer, discrimination for example.
You can refuse to work for the new employer. You must let your current, or prospective, employer know that you object to the transfer. You'll be regarded as having resigned and will have no right to claim unfair dismissal or to a redundancy payment.
If you're employed by a contractor (in catering or cleaning for example) and you lose a contract to another contractor, you should, unless you're told otherwise, turn up for work as usual. You and your contract of employment will usually transfer automatically to the successful contractor. If you find there's no job for you, you can consider making a claim for unfair dismissal against both employers in an Industrial Tribunal. You may also have a claim for failure to consult before a TUPE transfer.
Your employer must consult the representatives of the workforce about the transfer. This will either be with trade union officials or employee representatives who are usually elected by the workforce. You must be told:
The information must be given in good time and the consultation must be carried out with the aim of coming to an agreement.
If any reorganisation is planned, your representative can put forward your views. Your employer must reply to these and say why if they reject them. Your representative can complain to an Industrial Tribunal if the employer fails to inform and consult. The complaint should succeed unless there were exceptional circumstances preventing your employer from informing and consulting (like events outside their control for example.)
If you are dismissed in connection with the transfer, this is automatically unfair, unless there's what is known as an ETO reason. This stands for 'economic, technical or organisational reason which could involve changes in the workforce like in numbers or roles. Redundancy is an example of an ETO reason.
After the transfer, your new employer may want to cut the number of employees. If you're selected to leave, or if you're dismissed for an economic or technical reason, you may have the right to a redundancy payment.
Your occupational (company) pension rights earned up to the time of any transfer are protected by law. If your old employer offered you access to an occupational pension scheme immediately before the transfer then your new employer must offer access to either:
If the scheme is defined contribution scheme, then your new employer must match employee contributions up to six per cent of pensionable pay.
Once the transfer has taken place, make sure you're given an up-to-date written statement of employment. This should:
Don't be alarmed if you receive a P45 - this often just means your tax records are being updated, not that you're out of job.
The Labour Relations Agency (LRA) offers free, confidential and impartial advice on all employment rights issues. You can contact the LRA on 028 9032 1442 from 9.00 am to 5.00 pm Monday to Friday.
Your local Citizens Advice Bureau (CAB) can also provide free and impartial advice. You can find your local CAB office in the phone book or online.
Employment
