Kerry Hudson, Employment Solicitor said;

“Many clients are concerned about the changes they may face and the how their jobs or their contracts may be affected. People immediately panic when they know they’re getting a new boss. They wonder what is going to happen to them. But the first thing I always tell them is ‘your terms and conditions should not change’.

One prime concern is travel, especially, for example, among parents with children at nursery who fear they may have further to go for work.  A new employer may offer travel pay and to offer the extra travel time as part of the working day, but the new conditions may still leave employees daunted. In such cases, where there is no resolution between the two parties it becomes tricky for employees to negotiate an exit. She said workers should always be mindful of asking for redundancy rather than offering their resignation. Asking a person to travel to a different location might not look like a big deal to a new employer, but to the other person it can be and they may prefer to be made redundant. But at the same time you cannot force a new employer to make you redundant.

This is where a solicitor comes in. In this instance a person should most definitely not put themselves in a position where they resign – instead they should still seek a fair redundancy. It can be tricky to negotiate when you’ve never had the experience but there is a process in which you have to explain why you can’t accept the changes, for example why you can’t travel. You will find that usually the new employer will accept your reasons. For an employee to bring a claim for constructive unfair dismissal is a lot messier for an employer than an amicable redundancy.

If there is a takeover where the company brand and operations remain the same but with new heads at the top there should be no implications on staff contracts. If a company is taken over and the face of the business changes – for example a change of brand and branches closing with staff and assets incorporated into the new brand –  employment is transferred from the old employer to the new and the rights of employees come under TUPE – Transfer of Undertakings (Protection of Employment) regulations. Working terms and conditions in an employee’s contract should not change under TUPE, but if they do they should be better – for example, a better pension.

In cases where an acquisition leads to the duplication of roles across the two businesses the new owners will hold a consultation process. This can lead to employees being asked to take voluntary redundancy, take up alternative roles within the business or re-apply for their existing roles. Those that opt for voluntary redundancy should receive their notice pay as a contractual entitlement on top of any redundancy pay. Ideally those who apply for voluntary redundancy should usually also receive an enhanced ex gratia payment – an incentive for them to apply. They can even receive payment in lieu of their notice – three months’ pay without having to work, and any accrued holiday pay on top of that is always an incentive. Not only is this an incentive to the workers but also to the employers who incur far less cost.”

For further information or advice on TUPE regulations, or any other employment related issue, please contact our expert Employment Law team who will be happy to help.

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Kerry Hudson, Employment Solicitor, issues the warning in light of the end of the government’s furlough scheme this month.

With the scheme offering a lifeline to companies such as in leisure that have been forced to temporarily shut down in times of less demand, there is now a lot of uncertainty about what might happen in the future once it comes to an end.

Often in industries where there is a high turnover and employees are hired very quickly, it might be all too easy to overlook a contract of employment, and sometimes employers might think it’s ‘a bit much’, but when things go wrong having a contract of employment goes a long way to resolving disputes.

From the first day of your employment employees are entitled to a written statement of employment which covers key elements of the agreement, such as pay, start date and hours of work.

However, a contract of employment provides that much needed security for both parties so neither party is left wondering what has been agreed or what they are entitled to, particularly if the employers has stated they are entitled to extra benefits over the statutory legal minimum.

Factories in particular are known for laying employees off to accommodate peaks and troughs, but furlough changed that as it brought about an alternative.  However now it is due to end employers need to be more disciplined in their approach to avoid difficulties in the future if situations like the pandemic happened again and there was no furlough scheme so clauses such a lay off or short time working need to be covered

A contract of employment – particularly for people in industries such as those most hit by the pandemic – would clearly set out the employer’s position and give both parties more clarity.

While a written statement of employment is a legal requirement, contracts of employment are not. But they could offer an added layer of protection should companies come up against legal action from a disgruntled employee.

In some circumstances an offer letter may appear to suffice, but I would always go one step further – particularly with the events of the past year and resulting changes in legislation.

A contract of employment goes into much more detail. Each party knows where they are and what is expected of them and with more and more people working flexible hours in the wake of the pandemic, a contract of employment gives employers the opportunity to outline such finer details – including the days an employee may be expected in work and the days they can work from home.

Also, don’t forget the crucial importance of a restrictive covenant that can be added to an employment contract to protect your business and the more senior your employee, the more crucial it is to have a contract of employment.

An employer investing in a proper contract of employment will reap its rewards when you need it most. Employees expect Contracts, when they don’t receive one it starts to raise concerns, so get it sorted from the outset.

For more advice on Employment Law both for employees & employers, contact our team of experts on 02476 531532

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