Q: I’m taking over a business with staff who don’t work on Mondays. When we draw the contracts, can I include bank holiday entitlement in some and not others?
Feb 19 2009
Answered by: Peter Done Ask a question
Under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), employee rights are protected when you buy a business or even sell it on. Most commonly, employees keep the same rights, terms and conditions. TUPE applies to transfers of large and small businesses – although there are some exceptions.
You cannot change the terms and conditions of the employees to make them the same as each other. This could be seen as constructive dismissal, which would allow an employee to take you to a tribunal.
As well as transferring the same terms and conditions, staff will also have continuity of employment. You will have taken over their contracts of employment immediately before the business was transferred to you.
If you change employees’ terms and conditions for the worse, simply because of the transfer, they can resign and claim constructive dismissal.
However, if the proposed change is unconnected with the transfer, it can be handled like any other change. This should be done only if absolutely essential and you should take professional advice. Effective consultation between you and the two workforces will lead to a better work environment for all concerned.
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