Does TUPE Apply In This Situation?

[just-asking]

I work for company A at their only premises, and after 3 years company A gets purchased by company B who have their own premises. The 2 sites are rebranded as 'Company B'.

 

After a couple of years, company B introduces a bonus scheme based on overall company performance. The bonus would be paid to each employee at the end of the calendar year.

 

Mid-way though the year, company B sells the business that is being run from the site I work at (what was company A) to company C.

 

Company C announces that as the bonus scheme was run by company B, the bonuses would be not be paid, although company C might introduce their own bonus scheme in the future.

 

During the transitions from company A, through B and now to C, I haven't (nor has anyone else) had a new contract and the general line that T&Cs remain as before has been used.

 

Is the removal of the potential bonus fair in this case, considering TUPE hasn't been used?

[bazak1]

Hi ,

try http://www.berr.gov.uk/files/file20761.pdf which is a guide to the regulations which may be of help.

[just-asking]

Bazak - thanks for the link, it makes interesting reading and actually raises a few questions about changes that occured when moving from company A to company B also.

[elche]

Is the removal of the potential bonus fair in this case, considering TUPE hasn't been used?

It is not really a question of '...was TUPE being used...', more one of, 'Does (or Did) TUPE apply?'

 

Thus, was the transfer from A to B a 'relevant transfer?(RT)?' Also was the subsequent transfer from B to C equally a 'relevant transfer?'

 

A 'RT' occurs when there is a transfer of some business activity from one legal person to another, and that which is transfered is an economic entity which retains identity, or there is a service provision change.

 

My fingers are too lazy to attempt to define, and differentiate, the two definitions. But:

 

If either applied to the transfer(s) you have been subject to, then your T&C's of employment, including any bonus scheme, transfer along with you.

 

Thus, if the trasnfer from B to C in your example, were, a RT, you would be within your rights to demand that your T & C's of employment (including the bonus scheme), transfer along with you.

 

Personally, I would put the argument that this was a RT, informally, to your employer first. Thus, you are entirled to the bonus.

 

Then see what their response is.

Edited October 10, 2008 by elche