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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 60498
Experience:  Qualified Solicitor
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Please, Perth, Scotland, I am being tranferred to a new IT

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Hi yes please
JA: Where is this? It matters because laws vary by location.
Customer: Perth, Scotland
JA: What steps have been taken so far?
Customer: I am being tranferred to a new IT company in December using the TUPE law
JA: Anything else you want the Lawyer to know before I connect you?
Customer: Mainly regarding my company car being transferred over to the new company and my rights

Hello, my name is Ben, I am a qualified lawyer and I will be assisting you with your question today.

How long have you worked for the business, all in all?

Customer: replied 5 days ago.
over 22 years

Thank you. I will get back to you with my answer as soon as I can, which will be at some point today. The system will notify you when this happens. Please do not reply in the meantime as this may unnecessarily delay my response. Many thanks.

Hi there. I have your question to hand. I am in court today and will get back to you at the earliest opportunity. Many thanks

Many thanks for your patience. If the Transfer of Undertakings (Protection of Employment) Regulations 2006 (better known as TUPE) apply to a transfer, those employees assigned to the transferring business will automatically move to the new employer on their existing contractual terms and conditions. Simply put, the new employer would 'step into the shoes' of the old employer and the employees should start working for the new employer as if nothing had changed, apart from the name of their employer.

 

So the first thing to consider is whether the current benefit is specifically part of your contract as that is the only way you can expect it to transfer to the new employer.

 

Automatic transfer is the ideal outcome, although post-transfer difficulties can often arise. For example, the new employer may wish to try and change some of the incoming employees’ terms and conditions as they may not necessarily agree with the terms they were entitled to under their old contracts. However, under Regulation 4(4) of TUPE any changes are automatically void if the sole or principal reason for them is the transfer.

 

The only circumstances under which an employer may wish to try and introduce changes are:

  • If they were unconnected to the transfer; or
  • If they were necessary for an economic, technical or organisational (ETO) reason, subject to employee agreement or the terms of the contract permitting the change.

 

Some employers may try and justify making changes by arguing that they are needed in order to harmonise the transferring employee’s old terms with the new employer’s standard terms. However, Government guidance and case law has restricted the application of harmonisation as a genuine reason to amend a person's terms of employment. Harmonisation will only be a valid reason if there is a change in the workforce and this must involve change in the numbers, or possibly functions, of the employees. In practice, relatively few contractual changes would involve such changes so harmonisation will rarely be used as a justifiable reason.

 

If there are concerns about the fairness and validity of any changes introduced by the employer following a transfer, a formal grievance can be raised with the employer. Following that, the main option to pursue this would be by resigning and making a claim for constructive dismissal in the employment tribunal.

 

Does this answer your query?

Customer: replied 5 days ago.
Thank you for your response. I was fairly familiar with what you have said and my company car is in my contract. I wrote this out earlier to give you more detail....


I have been with my company for over 22 years but am now being transferred over to a new IT company using TUPE law. My main question is regarding my full maintenance and insured company car. My current car is a VW Golf GTD valued at just over £30000 from new. The new company is called HCL Technologies. They are a global IT outsourcing company.

I need to know my rights regarding this being transferred over to the new company. I have been waiting over a month for an answer with nothing but rumours that they don't do company cars so might need to be a car allowance instead. Can you clarify exactly what I am legally entitled to please?

Hi so could you please clarify more specifically what you mean by your last question:

 

Can you clarify exactly what I am legally entitled to please?

Customer: replied 5 days ago.
If they state they don't provide a company car but would give me a car allowance instead. What value would that be considering the value of the car I am used to along with insurance and full maintenance included?
Customer: replied 5 days ago.
Being a billion pound company I doubt they do not have a company car option for their staff.
Customer: replied 5 days ago.
I now have a meeting with them on Monday to discuss this so I need to be prepared for what they present to me.

The car allowance is entirely down to the employer and employee to agree on. They may have set rates, depending on the type of car, but if these do not exist then it is up to you to negotiate one with them.

 

In general, the employer will calculate how much they are currently spending on the company car and then provide a similar amount to you. They will also calculate how much employer tax they pay on your car, what basic rate of tax you pay and finally whether they are looking to incentivise the taking of cash allowances (i.e. the more of an incentive they want it to be the better the rates that are offered).

 

However, I cannot tell you what rates you should ask for or accept as that is not a legal question, that is just an internal policy, to be agreed between you and the employer.

 

Does this clarify things a bit more for you?

Ben Jones and 5 other Law Specialists are ready to help you
Customer: replied 5 days ago.
Yes thank you very much for you help Ben. Have a nice weekend.

You too and all the best