This is a follow on question to one I asked a few weeks ago. I am under tupe following the loss of a contract to another company. Following the consultation process, we have now been informally advised that the new company will not be taking any of us on and will cite an appropriate ETO reason.
I just wanted to know if the new company can start the consultation for redundancy before the transfer date which is the end of this month? Or do they have to wait until we technically become their employees?
Firstly, in a TUPE situation they will be taking you on, even if you are then made redundant almost immediately. They should be informally consulting with you during the transition but can't do anything formal until you are technically their employee.
Thanks flowery. None of us are staying because they have enough resources to service the contract without needing extra people. Of course it is feasible that they will keep one of us and make existing staff redundant, but I am trying to prepare for the worst.
You can't be made redundant because of TUPE. If they need 8 widget makers to service the contract but already have 4 in place, they'd have to take on all 8 from the existing service provider, then have a selection process to make 4 redundant from all 12 widget makers.
just to be clear though, you CAN be made redundant following a TUPE transfer its just that you can't be automatically chosen just because you were transferred.
In answer to the original question, technically the redundancy consultation can't start until you have transferred but in practice you may well be offered a compromise agreement to agree to leave immediately in which case you'll probably be offered an enhanced package plus payment in lieu of notice. What the new employer really doesn't want is for you to transfer and then to have to pay you for the duration of the consultation process and then to pay you during your notice period when they don't actually have anything for you to do.
If a division of a company is being acquired by a newco, and all divisional employees are being TUPE'd over but Newco is unlikely to need all the employees, when can Newco start the redundancy process?