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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 50148
Experience:  Qualified Employment Solicitor
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I work Systems in Saudi Arabia, my contract states

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I work for Bae Systems in Saudi Arabia, my contract states that I be paid Stg into British account. We are now being told we have to be paid in SR into Saudi account and that we will be employed by new company 51pc owned by BAE from next January. My major concern is my severance on termination, which will be quite a large sum. As Saudis can change our contract on a whim and I would end up with nothing. Can BAE do this or should they pay severance when old contract ends. Any advice would be gladly received
Peter Spragg
Hello is your contract governed by UK laws?
Customer: replied 2 years ago.
My contract was signed in UK and am employed in Saudi and salaried to UK bank account
Does the contract actually state which country's laws govern it? It is usually in a clause towards the end of the contract
Customer: replied 2 years ago.
States we are under UK law
This will not be a redundancy situation where you can expect severance or any other payment for compensation. It wold be a change to your contract of employment to start with and then a transfer to the new company, which would have a duty to preserve your existing terms and conditions. Whilst the change in currency will amount to a change to your contractual terms and conditions, you cannot realistically seek compensation unless you can show that you have suffered losses as a result. You will not be compensated for the fact that the terms were changed, without there being any detriment to you as a result. So for example, if as a result of the exchange rate you will have a noticeable reduction in pay, you may indeed ask the employer to compensate you for that by adjusting your pay to keep it in line with your contracted rate of pay. However, if it is just going to result in inconvenience to you, such as having to open a new bank account and having to move money between accounts, that will not be a quantifiable loss for which you can seek compensation, so it is only actual losses which you can do that for. As to the change to the new company, under UK law a piece of legislation known as TUPE will apply where you could transfer to the new company and it will automatically have a duty to honour your existing terms and conditions. So nothing should change apart from the name of the employer or the company which employs you and the remainder should remain the same. I hope this has answered your query. I would be grateful if you could please take a second to leave a positive rating (3, 4 or 5 stars) as that is an important part of our process and recognises the time I have spent assisting you. If you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you
Customer: replied 2 years ago.
Thank you for that. just one more question. As BAE will be 51% shareholders in new company, but this one will be Saudi registered, can they go back on severance payouts? Also what is TULE
The key is whether your contract continues and is governed by UK law, so if the terms continue to apply and the contract remains the same then they should still honour the severance payments in the future. TUPE is a piece of legislation which exists to protect employees' rights if their employment changes hands. This could be because of a sale or transfer of the business. 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. If your original question has been answered I would be grateful if you could please quickly rate my answer by selecting 3, 4 or 5 starts at the top of the page - it only takes a second to do and is an important part of our process. I can still answer follow up questions afterwards if needed. Thank you
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Hello, I see you have read my response to your query. If this has answered your question please take a second to leave a positive rating by selecting 3, 4 or 5 stars from the top of the page. I spend a lot of time and effort answering individual queries and I am not credited for my time until you leave your rating. If you still need further help please get back to me on here and I will assist as best as I can. Many thanks.
Customer: replied 2 years ago.
Thanks you have been very helpful, just one more question.....the new company will be under Saudi Employment laws, will TUPE still be enforcable
If it is a Saudi company working under Saudi laws, then TUPE would not cover it as that is UK/European legislation. So you cannot expect them to honour foreign legislation. In that case you should seek formal termination of your contract with the existing employer with all due benefits, unless they van guarantee that the current terms will be guaranteed in the new company