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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 50161
Experience:  Qualified Employment Solicitor
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What is a rolling contract and what should I look out

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What is a rolling contract and what should I look out for as an employee if my company sells me to another
Hello, my name is ***** ***** it is my pleasure to assist you with your question today. Is this in relation to UK law?
Customer: replied 2 years ago.

Complicated, I am asking on behalf of friends who currently work for USA Company via UK Branch ( they are English) although apparently their employment contract is governed by UAE Law - their present employers have told them all will change this Sunday. The question is to protect them; do their present employers have to terminate their existing contract, can their present employers sell their contract without any consultation with them, I am thinking they will - so therefore I am assuming it will become a rolling contract and am asking what they really need to be mindful/careful of – if any of this makes sense !!

We do not have anyone who can advise on UAE law unfortunately so I can only help with UK law
Customer: replied 2 years ago.
Fine can you give me an answer re UK law ?? Then
ok will do
There is a piece of legislation known as TUPE which exists to protect employees' rights if their employment changes hands. This could be because of a sale of the business, or because a new contractor takes over the services provided by their current employer. Examples include:
• Simple sale of a business where the owner changes (excludes a share sale of the business)
• Contracting out of a specific service, where the employer engages a contractor to carry out specific activities they have carried out up to now (the opposite, contracting in, would also be covered)
• Change of contractors - where the services move across from one contractor to another
There is a requirement for the employer to consult its employees before they actually transfer but that does not mean they have to consult with them about the actual transfer and whether it should happen, rather it is about consulting about the proposed transfer and would happen after it.
In order to be protected, the first requirement is that the person needs to be an employee, which means self employed workers or agency staff will not be covered. They will then only be protected if they are permanently employed in the business (or part of it) that is being transferred.
Next, one has to determine if the person is ‘assigned’ to the organised grouping of employees transferring. As there is no definition of what ‘assigned’ means, whether the employee is assigned is essentially a factual question and needs to be determined by taking into account different factors, such as:
• The percentage of time spent working in the business being transferred
• The amount of value given to each part by the employer
• The job description and what the employee is contractually required to do
However if the whole of a business is being sold then there is usually no issue as to the above.
Finally, the business or service that transfers has to continue with the new employer. Therefore, any activities that are currently carried out must continue with the new employer after the transfer. If the business or services changes significantly after the transfer then TUPE protection would not apply. In the case of service changes the service has to be fundamentally and essentially the same before and after the transfer for TUPE to apply.
If TUPE applies to a transfer, those employees assigned to the transferring business will move to the new employer on their existing terms and conditions. Simply put, the new employer will 'step into the shoes' of their old employer and the employees should continue working for the new employer as if nothing had changed, apart from the name of their employer. They will also retain their continuous employment.
I hope this has answered your query. Please take a second to leave a positive rating, or if you need me to clarify anything before you go - please get back to me and I will assist further as best as I can. Thank you
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