Transfer of employment from one company to another company? [UK Employment Law]

Taerak

Hey all,

My HR Manager has recently told me they are looking to transfer my employment, as well as that of several other employees (but not all!), from company A to company B. Both companies are owned by the same director. In the email, the manager explains they will issue a P45 - this sends alarm bells ringing to me; because it makes it seem as though I am terminating my employment and being hired anew by another company. Furthermore, the HR manager is saying they're looking to complete a transfer at the start of the next week.

I'm slightly paranoid about this, because while my current employer has been absolutely excellent to me; my previous employer royally screwed me on every aspect of the labour law. I also work in a pretty volatile industry; where a company can go under at pretty much any time.

Considering I've worked for my current company for 5 1/2 years, I am not particularly keen for anything to throw my legal protections into doubt. Am I interpreting this wrong? Is there anything I should ask about, or check, or get signed? How can I know my rights are being protected?

Any help would be massively appreciated, as I am 100% out of my depth!

japan

This is not my area but i do have some background knowledge

If you're being issued with a P45 then I think the situation is that you're effectively being made redundant with an offer of suitable alternative work:
https://www.gov.uk/redundant-your-rights/suitable-alternative-employment

Depending on the details of your situation you might be covered by TUPE:
https://www.gov.uk/transfers-takeovers

Which should preserve your employment rights, but I don't know if it's normal to be issued with a P45 during such a transfer

Have you spoken to your HR? They should be able to provide you with clear information about what's happening and what your options are. If they can't/won't then that should be ringing alarm bells.

Citizens Advice should be able to help, too.

Taerak

Thanks for the reply, @japan! I haven't spoken to HR yet - mostly because the email was sent at the end of the day, and I wanted to know some information before I challenged anything. Also because of the old adage "HR is not there to help..."

In general, I have a pretty good position to raise concerns - essential to the project and difficult to replace; and have a very open, personal and honest relationship with the company owner. I've also recently had a raise, and my performance review has tipped me to be promoted in the next year or two - though I responded with casual optimism to that than enthusiasm based on some reservations about my suitability for the role. On the surface, I also know the transfer is being pursued for entirely administrative reasons - tax credits, grants, etcetera.

I had a look at TUPE. It seems like they want to arrange this under those protections, but nothing that is happening seems to match that. For one thing, the 2014 amendment requires them to notify us 28 days in advance, and give us exact details about what the terms of the transfer are.

For the record, I don't think any of this is malicious - just naivety about the legal process, which must be common in small independent companies like mine. I'm not a stickler for process - just for legal protection. I might raise this in a conversation tomorrow with my boss and point out that the way they're pursuing this is not according to the book, which is not in their interest (and not mention it is not in mine either unless they don't pick up on it), but that I am happy to sign a contract that explicitly states my rights, privileges and responsibilities if asked.

Taerak

Also re: alternative employment: Practically, it can't really be alternative employment because I will literally be doing the same exact job in the same office with the same people. Of course, I don't know whether the law cares about reality.

Djeet

From the link japan gave, if you are doing the exact same job, with same skills needed, for similar compensation, and under the same terms, then that exactly describes suitable alternative employment. I would find out the terms though, as they might be different than what you currently enjoy/have to deal with, and that should be something HR can provide you in advance of the transfer.

Taerak

@Djeet I know on the surface it does, but if that qualifies (because it's the same project too!) then everyone could just fire and rehire their employees in shell companies before they hit the 2 year mark. Which I guess wouldn't surprise me in the slightest.

Anyway, I asked them about this after I had looked through more of TUPE. Let's say they weren't super aware of the legal consequences, or what procedures exist to facilitate what they're doing. In practice, this is not super surprising; so I basically asked my boss to either make my current setup water tight in a new contract, or process it under TUPE. He basically agreed with me, so for now this seems solved! Thank you both.