I am British and work in England. The company i work for was taken over by a larger company a few months ago. Bit by bit the new management have been making changes to the terms and conditions under which we work ,ie different working hours, reductions in staff discounts, new pay schedule etc. All of these things were outlined very specifically in the contracts our previous managers gave us, but the new management have made the changes anyway and said that they see it as "minor changes to our terms and conditions". They have now issued us new contracts of employment which are less favourable than our old contracts, with several 'grey' areas, and it seems we are expected to sign them or 'seriously consider if we want to work for that company'.
How long are the new owners LEGALLY obliged to honour the former contracts of employment as issued by the previous owner/managers?
2006-11-13 00:54:33 · 4 answers · asked by Sight 4 in Business & Finance ➔ Other - Business & Finance
Previously the business was a Limited company and was family owned and run, employing 50 to 60 full-time and part-time staff. We do not have a union.
The new owners are a national company with many locations and a couple of thousand employees. The changes being made are supposedly 'to bring us in-line with the rest of the company'.
I understand we may have been spoiled in the past by a generous employer who believed in paying good staff good money and providing 'perks' to keep the good staff happy.
Happy staff = good customer service = happy customers = happy business!
Sadly, this ethos flies in the face of the corporate attitude the new owners employ. They seem to be much more the kind of employers that pay peanuts to employ monkeys and do not require staff to use their brains and would much more prefer us to be quiet and do as we're told!
There are bound to be changes when a new company takes over, but surely there is a difference between change, and being trodden all over!
2006-11-13 01:52:16 · update #1
This is a very complex contract question and you may need to seek help from CAB, a local Law Centre or a union if you belong to one. If you work for a limited company then that company is the legal person who you have a contract with and it does not matter who owns it the contact persists. If that company wishes to amend the contracts of employment there are ways. As a general rule they should be able to show that is it necessary for the good of the business, that if the changes are to your disadvantage you are adequately compensated, you get reasonable notice of the changes. The problem with answering this on this forum is that the devil is in the detail which is why you really need an experienced employment lawyer who can ask the relevant questions. In principle it is not possible for contracts of employment to be cast in stone by their nature they must be able to change because the business environment changes.
2006-11-13 01:11:01 · answer #1 · answered by Maid Angela 7 · 1⤊ 0⤋
once the new company takes over your contract with the founder firm has little effect,your union should be taking steps to ensure you contract with the new employer is better then the old ones, company's can alter the hours of a contract to suit there needs,the amount of earning's can be altered by them as well ,the new company gives each employee notice by given a new contract if you don't agree to the terms then you could be looking towards finding another job,you are not on your own,any firm can do the same thing the worse hit are those without a union member ship,most firms will close down making redundancy's so think to your self that you still have a job,try to keep smiling and think positive
2006-11-13 09:22:48 · answer #2 · answered by angie n 4 · 0⤊ 0⤋
When someone buys a company they by the contracts of the employees. so not until the terms of your orginial contract wear out . ie 2 years, 5 years . etc... dont sign.. ask them if the are willing to seriously consider you going down to the magistrate and filing suite. http://www.direct.gov.uk/Employment/Employees/RedundancyAndLeavingYourJob/RedundancyAndLeavingYourJobArticles/fs/en?CONTENT_ID=10026691&chk=OQ%2BdKc
2006-11-13 09:08:57 · answer #3 · answered by dreamweaver824 4 · 1⤊ 0⤋
Your old contract is a BINDING contract in law and they should fullfill everything on it. Best advice is to go to your local CAB (citizens advice bureaux) they will be able to help you further.
2006-11-13 09:09:32 · answer #4 · answered by Michelle 2 · 1⤊ 0⤋