Employment Contract Question

[smurf007]

Hi guys im new to this forum and im looking for some advice please.

 

I have been working for a small company for nearly 4 years now and the company has just recently been sold as a going concern.

The new owners have just given us all a new contract to sign cancelling our current contracts.

It says in it that my employment with the company started 1 month ago (this is the date new owners took over) when i have infact been employed by the company for almost 4 years.

 

The question is shall i sign it, or insist they put in my original start date with the company?

 

Many thanks in advance

[caro]

I would be inclined to remind them that you've worked for the company continuously for over 4 years. I'm no expert on employment, but I'd be worried that I'd lose employment rights, and if (heaven forbid) redundancy became an issue, you could lose out. Try that and see if they'll amend it.

 

If they aren't willing to change the contract accordingly I'd attach a letter stating the fact you've worked there for 4 years and sign the contract subject to attached letter.

 

Others more knowledgeable may have better advice.

[numbers666]

Hi Smurf,

 

TUPE springs to mind straight away.....all existing rights and contractual terms SHOULD be honoured by the new company.

 

Questions that need answering to fall under tupe....

 

1. Has the legal entity changed ? ie from acme ltd t/as abc sales to mickey mouse ltd t/as abc sales

 

2. Has the company name changed ?

 

3. Have you been issued with a P45 (effectively terminating employement with old company) ?

 

What ever you do, don't sign the new contract... you will be signing away 4 years of protected rights.....

 

If you have legal cover as part of your home insurance, they could provide valuable advice .....

 

 

If you can return with the answers to the above, suitable advice can be given....please dont feel pressured into signing by the bosses.....

 

TAKEN FROM ACAS WEBSITE (GOOGLE IT!)

 

The Transfer of Undertakings (Protection of Employment) Regulations (TUPE) protects employees' terms and conditions of employment when a business is transferred from one owner to another. Employees of the previous owner when the business changes hands automatically become employees of the new employer on the same terms and conditions. It's as if their employment contracts had originally been made with the new employer. Their continuity of service and any other rights are all preserved. Both old and new employers are required to inform and consult employees affected directly or indirectly by the transfer.

 

Take Care

 

Numbers

Edited November 20, 2011 by numbers666
added tupe info from acas

[smurf007]

Thank you for the replies guys,

Absolutley nothing has changed with the company apart from the 2 new owners (husband and wife).

Ive had no P45.

 

Ive written down some things i want to discuss with them about my contract and they have read them and are going to get back to me next week.

I forgot to mention another point in my new contract and this was they have put in there "that they have no obligation to give me a pay rise".

I get paid minimum wage, so therefore they have to comply with minimum wage increases dont they?

Will not sign contract untill i can get into citizens advice.

Thanks again

[becky2585]

Hello

 

You can't sign away statutory rights in an employment contract. I would imagine that the clause relating to pay is merely so a yearly payrise is not expected; it will be discretionary. They do have to increase your pay in line with the NMW Regs, which are reviewed at least yearly.

 

As per continuity of employment - TUPE works to protect employees' terms and conditions of employment upon a business transfer. This means that your contract should state that your start date with the company is [X - the day of the transfer] but your period of continuous employment started on [Y - the date 4 years ago when you commenced employment].

 

I hope this helps.

[smurf007]

Final Update:

 

Just to let you know the new owner of the company has been in touch with me via letter and has re-done my contract with the following ammended:

Start date is now back to 4 years ago.

And wages increase with Minimum Wage Regulations.

 

many thanks for all your advice guys

[caro]

Pleased it's sorted.

[honeybee13]

If you're happy, I'm happy for you. Well done.

 

My best, HB