Take Over

Rackstar

Basically the company I work for is being taken over and everyone in my company will now be employees of the new company. This is all well and good and there will be no redundancies as a result. I am just wondering as we are being issued with P45's from our old company and will be on the books of the new company, where do I and my co-workers stand with regards to future redundancies and other similar issues that length of service would have a bearing on?

I suppose we will technically be employees of the new company starting in January 2010 but that is hardly fair on loyal staff who have considerable service.

I hope this does not sound petty as there are plenty of people out of work with a lot more to worry about than issues like this.

Is there anything else that this will affect?

Thanks!

Tom Young

We don't do legal advice, but you did read the charter, didn't you!

Yep, this is covered by The Transfer of Undertakings (Protection of Employment) Regulations 2003.

The TUPE Regulations provide, in very basic terms, that the employees attaching to a business which is being transferred must transfer with the business to a new employer. Not only must the employees be transferred but they must be transferred with their accrued years of service, their existing terms and conditions of employment (with a limited exception in relation to pensions), and also with the benefit of any collective agreement to which they may already be subject.

The application of the TUPE Regulations has been fraught with difficulties and has often given rise to more questions than answers. One of the questions legal practitioners have struggled with over the course of the past number of years is what happens when an employee refuses to transfer (with the assets to a new employer).

Up until very recently, the question as to what actually happens an employee who refuses to transfer remained unanswered. There were two schools of thought. Some practitioners believed that in a situation where an employee refuses to transfer, his/her employer is obliged to find alternative employment, failing which his/her position is redundant and an entitlement to redundancy pay ensues. Others were of the view that an employee who refuses to transfer in a situation where his/her terms and conditions of employment are guaranteed, he/she is effectively resigning.

http://www.mhc.ie/publications/8/99/


Also see here: www.citizensinformation.ie Under the Employment section.

Practical Tips:

1. Don't panic;
2. Don't worry;
3. Don't engage in gossip, rumour or conjecture deal in fact ONLY;
4. Discuss any concerns with your employer as if things were the same as they always were;
5. There are likely be modifications to the norms of your existing employers terms and conditions to suit the new firm e.g., a new contract, pay cycles etc. but these won't be immediate changes;
6. You will be employees of the new company from the date of closure of the merger or takeover; and
7. Expect some rebranding etc.

I will say a couple of things:

Do not expect a P45; rationalisation may mean trimming of jobs (or not); ignore panic merchants; don't fear change, work with it. It is not an entitlement to redundancy, so far.

Most companies do these things properly.

Tom

Rackstar

Hi Tom,

Thanks for the reply! Sorry if I came across as asking for legal advice, I did read the charter and tried not to but may have inadvertently touched on it.

Rackstar