When a company undergoes a TUPE (Transfer of Undertakings Protection of Employment) process, it means that the employees are transferred to a new employer. This can happen in situations such as mergers, acquisitions, or outsourcing. One of the common questions that employees ask during this process is whether or not they will get a new contract.
The short answer is that it depends on the circumstances. If the new employer is taking on the same business or part of a business that the original employer was running, then the employees` contracts should be transferred over too. This is known as an automatic transfer, and employees will keep the same terms and conditions of employment that they had before the transfer. This includes pay, hours of work, holiday entitlement, and any other benefits that were agreed upon in their original contract.
In some cases, however, the new employer may want to make changes to the employees` contracts. This can happen if they are taking on different parts of the business or if they have different working practices. Any changes to the employees` terms and conditions must be agreed upon by both the employee and the new employer. It`s important to note that the new employer cannot unilaterally change employees` contracts without their consent.
If the new employer does want to make changes to the employees` contracts, they must consult with them and provide a valid economic or technical reason for doing so. They must also provide a reasonable period of notice before implementing any changes. If the employee does not agree to the changes, they have the right to object and may be entitled to a redundancy payment.
It`s also worth noting that employees who are transferred under TUPE are entitled to the same protections as they had before the transfer. This includes protection against unfair dismissal, redundancy payments, and the right to be consulted if there are any proposed changes to their terms and conditions.
So, do you get a new contract when you TUPE? The answer is that it depends on the circumstances. If the new employer is taking on the same part of the business, then your contract should be automatically transferred over. If the new employer wants to make changes to your contract, they must consult with you and provide a valid reason for doing so. Remember, you have the right to object to any proposed changes and are entitled to the same protections as you had before the transfer.