Client wants to "Buy" my husband

A question about : Client wants to "Buy" my husband

Hi,

My husband has worked for company XXX for nearly 17 years. Part of the company supply staff members to a client company, who I'll call ABC.

Apart from a 6 month break around 12 years ago, my husband has always worked for client ABC. So he is employed by and is paid by company XXX, but his day to day dealings are with client ABC. He does the same work as other ABC employees, but is effectively employed via a third party. He is not a contractor, but an employee.

Client ABC have decided not to renew their contract next November. However, they are keen to retain the expertise and knowledge of the staff who have been working for them. They want the staff to transfer to them and to work directly for them. Company XXX don't really want to deal with staff augmentation any more as this is not their core business, so I think they are quite happy to get rid of this.

I'm just wondering if anyone knows what sort of things we should be asking. There has been talk of a transfer fee. When the last round of redundancies took place, we worked it out that it would be over Ј20,000 that my husband would have received had he taken it (it was enhanced and voluntary). I am presuming that they could not use Tupe as he is not being made redundant but being sold to the client.

Think this is probably an unusual situation. I want to get as much information as I can over the next few months so I know where he stands. Any pointers to websites would be helpful too.

Thanks, Mandy.

Best answers:

• As his current employer don't seem to object can he get that in writing in case they change their mind? Sounds like he's in a good bargaining position; you could try googling 'golden handshake'.
• How long would it cost to retrain someone up to your husbands standard because unless the business is very lucrative I can't see the new company paying a Ј20k hand shake.
  They might feel that it would only cost 5k to train someone up.
  Your current company might also feel that actually rather than pay 20k they could find an alternative suitable job and save some money.
  If you move the one thing I would suggest you look at getting into the contract is the continuity of service. Your husband has 12 years so this should be the point that the new company start so if they ever want to make him redundant its 12 years plus X.
• They are taking a service in house from X co. Sounds like TUPE to me. Not sure why he thinks it isn't?
• Surely TUPE would apply? I have been through this twice, first time the employer decided to outsource to a 3rd party, so TUPE'd to the supplier retaining length of service and T&C. Second time when that contract ended TUPE'd back to the original employer. The job still exists, just the employer changes. The whole point of TUPE is to protect employees in these circumstances. Nothing should change except the name on the payslip.
• When whole companies are taken over that is often a case where TUPE does not apply.
  TUPE would be a solution(and may apply anyway) if XXX don't want the people that work for ABC and ABC are happy to take over the liability that comes with service.
• I suspect that company XXX will want to be compensated in some way if the staff move to company ABC. But I guess that has nothing to do with us.
  We just know negotiations are underway (and we're not really supposed to know, my husband only found about by chance). He feels really awkward because non of the others who will be affected know yet, but he has been told its confidential and he's not to say anything.
  I just want to make sure we are protected and know what the position is, so when it comes out into the open we know what question to ask and what is and is not possible.
• TUPE can happen to an individual employed by a company to undertake a role.
  I know of 1 person who worked directly for a company as as a handyman/plumber. When the co.s head office decided to apoint a single contractor to maintain all their sites, he was TUPE'd acroos to the new contractor. When they lost the contract, he was again TUPE'd to the new contract holders.
• Speaking from a position of having outsourced staff under me and not from an HR perspective, my team was TUPE'd across (there was no handshake payment but you can always ask). They were offered new contract terms or to stick with their old ones and they did continue their service. One area worth checking is the impact to your pension and any bonus. They lost the right to a bonus and obviously our pension scheme, but of which were significant losses. that aside, it was very straightforward.
• The pension may not be an issue if he is with 'NEST' or 'PensionsNOW' as if the new employer uses the same provider, the funds continue to be added as before.