new employer, same staff, old employers obligations

K

Kerak

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While I’m not directly affected, I am feeling some sympathy for those involved.
Effects about 4 full time and 6 part time , general operative level employees.
Their current employer has lost the contract.
The new provider will employ the GO’s to do the same tasks as before.
What is their position regarding, redundancy, service, seniority. Some will have been with the original employer for a good number of years. Been rural located they are unlikely to be offered employment with original employer locally. Nor is the new employer going to find to many locals to replace them if he doesn’t re- employ them.
Low paid low level but essential work.


Tks
 
Well there is legislation that ensures they have the rights to their positions after the contact is awarded to another Company, don't know the exact name of it, but if you google 'transfer of contracts legislations' you will see what the legislation covers, but my vague understanding is that they have rights to their existing positions with the new Employer.
 
Heart of the matter

If one has 10 years service, made redundant because employer lost the contract-- gets sum of money.
However, may offer them same job 50 miles away to avoid redundancy payments.

New employer will offer them jobs, won’t be worth his while if he has to bus in staff 50 miles, but they will have lost the potential for redundancy payments.

And before all the self righteous start, these jobs are so low paid that the prospect of a bit of redundancy might make up for the low wages they have had for years.
 
has to be reasonable alternative offer, have a look at DETE website there is some information there I believe as regards what is a resonable alternative offer of work especially in relation of an alternative location
 
Is the second company in any way linked to the first company?
 
No connection, original company a long established Irish company, new one is a international much larger one.
 
Thks for that , but its not a take over. Original company has lost the contract. New company could use there own staff and the original ones are either redundant or offered jobs with their original company but miles away. The most likely outcome is the new company will have to employ locals, given the nature of the work, odd hours, and rural setting. The nature of the work wont/cant change.
 
Maybe I'm missing something here, and I'm interested to understand what it is - why is something like TUPE relevant?

The employees are employed by Company A, Company A had a contract to provide a service. Company A has lost the contract, Company B won it. Company B has not taken over Company A, or a subsidiary of Company A, so why should it have to have anything to do with the staff of Company A? Are the employees somehow tied to the contract?

I know in my industry (Software), when we win or lose a contract we don't transfer to our rivals (or have them transfer to us) - even where you might have been full time engaged on the contract.

If there is some sort of obligation, why doesn't for example the rivals who beat SR Technics to 3 out of the 4 Aer Lingus contracts that were up for renewal earlier in the year take on the SR Technics employees? I know they are in another country, but based on some of the comments here should they have been offered jobs etc?

I would have thought Company B can choose to hire no one, any or all of the employees of Company B, completely at their own discretion after their own recruitment procedure, with employment terms & conditions they deem appropriate, taking NO account of existing seniority, T & C's etc.
 
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Has company gone bang ???

Has redundo been offered ??

What obligation has winning company have to employ them, or is it just suits them (experienced) ??
 
This situation happens frequently in the Contract catering business, where Employer A has lost the contract and employer B has won the contract.
what generally happenes is that the employees are given the choice of changing employer and staying in the same place (where continuity of employment is preserved) or staying with the old employer and being transfered to a new unit. Generally terms and conditions stay the same and the employees service history remains with them.

This is the legislation regarding redundancy:

An employee is not deemed to be dismissed and thus is not entitled to a redundency payment if:
He/She is re-engaged by a new employer immediatley on the termination of the previous employer
The re-engagement takes place with the agreement of all three parties. (New employer, employee and previous employer)
Before commencement of the period of employment with the new employer, the employee receives a statement in writing on behalf of the previous employer which sets out the terms and conditions of the employees contract of employment with the new employer. It also must specify that the previous employment was continuous and contain the particulars of the previous service, e.g. dates.
The employee must then notify the employer that He/She accepts.

Refusal to accept alternative employment:
An employee is not entitled to redundancy payment if,
The employer has offered to renew the contract, or re-engagement under a new contract under the same terms and conditions; and the renewal or re-engagement takes effect on or before the termination of the old contract; and he/she has unreasonably refused the offer. OR the employer has offered in writing to renew the contract or re-engagement under a new contract under different terms and conditions; and the offer constitutes a suitable offer of employment and would take effect within four weeks of the date of termination of the old contract;
and he/she has unreasonably refused the offer.
 
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