Merger minefield
Question
A large company has just taken over the one I work for. Obviously lots of things are changing but I'm worried that along the way my wages will be reduced in line with those of the larger company. Are they allowed to do that?
Answer
When one company is taken over by another then the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) come into force. These are European laws that give employees some protection when companies change ownership.
On a basic level, these rules mean that when a company changes hands the workers in the transferring company keep the terms and conditions they had previously. This includes pay, holidays and sick pay arrangements. But pension schemes do not transfer.
There are a lot of dependencies, ifs and buts involved in the TUPE regulations and, sometimes, the new employer can change the terms and conditions. Because of the complexity of the issue it would definitely be worth advice from your Trade Union, local Citizens Advice Bureau (CAB), local Law Centre or an employment law solicitor. In addition, the conciliation service Acas has a helpline you can call on 08457 474747 for initial advice.
If you do seek further advice it's worth having a copy of your old contract and any paperwork from your new employer regarding your terms and conditions to hand.
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Question answered by CAB
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