Employer asking me to sign new contract

sapper

My employer (a multinational financial services company) is planning on doing a restructuring of their operations in the UK and Ireland - from what I know this is to take advantage of tax "strategies" to reduce the overall tax burden - just like what the Googles and Facebooks of this world are already doing.

However part of this restructure is that the entity I currently work for is being replaced by another entity with a very similar name. The company has told us that we all need to sign new employment contracts with the new entity. However they have assured us that all benefits and compensation will be unaffected by the fact that we have signed new contracts. Someone who has worked for 10 years for the old entity will still get benefits from the new entity as if they had worked there for 10 years, even while the ink is still drying on their employment contract.

I worried that it could affect my "years of service" with my employer externally ie. with the Revenue, or if the company is purchased/merged, or if I am let go/fired/retire.

Does anyone know of any aspects like this that I should be concerned about?

Da Career Guy

Hi Sapper,

If your current employer is either taken-over or they have decided to outsource/or just transfer you under a new employer name all your rights and service related entitlements will transfer to the new employer (i.e. no break in service). This is covered under a piece of employment legislation called the Transfer of Undertaking Act.

Why not talk it over with the on-site HR people or if in doubt there are two good sources of information: Citizens Information or www.employmentrights.ie

Many companies have restructured over the last number of years and its good to hear that you still have a job to transfer to. Don't worry about this it is fairly common these days.

uberwolf

under tupe there is no automatic need to sign a new contract.

krissovo

I am in the outsourcing world and in the last 10 years my companys entity has changed 7 times with re-structures, re-branding and finally new ownership. Under TUPE your contract should automatically transfer with all your current benefits and for me 5 out of 7 this was the case. In the 2 that I had to sign a new contract it was forced but on first glance the contract had the same benefits and in one the companies pension contribution was increased by 25%. If it appears the same it may be worth with a group of co-workers to get a employment legal solicitor to to give you an assessment.

The changes they brought in for the contract changes were around travel, working hours and to factor working from home making them more modern.

sapper

Thanks all - this is a great help