# TUPE - worried that buyer wont "grandfather-in" our redundancy entitlement.



## jman0war (31 May 2010)

The company i work for has lost a service contract under which i work.

HR has informed us the handover to the new provider will fall under TUPE legislation.

HR has not offered to re-locate any of us into another position within the company.

So basically our futures will be in the hands of whomever take-over the service contract.

We all imagine being made redundant as our jobs are likely to be moved overseas.

Some of my co-workers are concerned that they've been working for the last 7 years and have earned a fair bit of redundancy entitlement under our current employer. 

They are worried that the whomever takes over, will not have to "grandfather-in" our redundancy entitlement.

Is this true or not?

Does TUPE protect us against such?

Are there ways a new company could come in and legally maneuver so as they don't have to pay us redundancy?


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## ANORAKPHOBIA (31 May 2010)

Your service is protected under TUPE legislation. There is of course no guarantee your next employer will be offering redundancy.


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## jman0war (31 May 2010)

Ok, but what about the redundancy we've all earned hereto?
Is that grandfathered-in as well?

Like, would they have to pay us redundancy for the past x years we've worked there?
Could it be like this:

New crowd takes over tomorrow, 2 months later lets most the staff go.
Now they have to pay the redundancy under the original terms those staff members would have recieved, plus whatever would be earned from the last 2 months?

Or is it like this:
New crowd takes over tomorrow, 2 months later lets most the staff go.
They offer no redundancy, so the past 6,7 years working there means nothing and no redundancy is paid.

I'd reckon it's the former, what would be the point of having TUPE leglislation at all if it's the later?


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## ajapale (31 May 2010)

Its the latter I'm afraid. 

The new company takes over and then when they decide to rationalise / close the business they must offer the employees statutory redundancy (based on years service carried forward from the previous employments). 

Some companies may negotiate a package somewhat in excess of statutory but they don't have to.

Is the current redundancy package in excess of statutory?

Do you know who the new company who is buying/taking over the business is? What is their form?

Are you members of a trade union?

Do you have contracts of employment with your existing employer?

Are you in the Republic of Ireland? Are the old and new companies incorporated in the RoI? Occasionally UK companies are involved and while the legislation is similar it is not identical.


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## jman0war (1 Jun 2010)

No, it is the Statutory Redundancy

No, it's going to be either IBM or HCL

No

Yes i suppose, i'm a permanent employee if that's what you mean.

Yes; not sure of the 2nd part but IBM is, not sure about HCL.


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## huskerdu (2 Jun 2010)

jman0war said:


> New crowd takes over tomorrow, 2 months later lets most the staff go.
> Now they have to pay the redundancy under the original terms those staff members would have recieved, plus whatever would be earned from the last 2 months?
> 
> Or is it like this:
> ...



They will have to pay you redundancy based on all your years of service, 
so the full 6 or 7 years counts, not just the time since they took over, but I think they only have to offer statuatory redandancy, I  am not sure but I dont think that you can negotiate for a higher payment based on the fact that it was practise in your last company.


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## shipibo (2 Jun 2010)

Are you being outsourced .I.E IT Dept from Intel being outsourced to IBM, HP etc ...


or transferred 

already in 3rd party company , moved to another


==================================================

You need to negotiate redundancy before you move over to new firm, and other issues not covered by TUPE .I.E Pensions


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## Red (2 Jun 2010)

You should not suffer financial loss because of TUPE so if it is custom and practise in existing company is to give above statutory in a redundancy package, then you are also entitled to this if new company offers redundancy along with your years service counted.


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## Mpsox (2 Jun 2010)

For clarity, if you've worked 7 years for your current employer, you are deemed to have worked 7 years for your new employer once you have transferred accros.


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## ANORAKPHOBIA (2 Jun 2010)

''No, it is the Statutory Redundancy

No, it's going to be either IBM or HCL

No

Yes i suppose, i'm a permanent employee if that's what you mean.

Yes; not sure of the 2nd part but IBM is, not sure about HCL. ''

If you are working for the company I am thinking of it is not Statutory Redundancy.

Perhaps you should think about joining the union as you are heading for choppy waters and do not appear to be very well informed.


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## Mpsox (2 Jun 2010)

if it's the company I think it is, anyone who has left on WFR on the company terms over the last 2 years has been for 5 weeks a year + statutory.


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## mum3 (29 Sep 2010)

Hi,
can I ask you how the redundancy package / TUPE worked for you? I am looking at transfer also and look to be in the very same situation as you faced when you posted this query.
Thanks.


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