New ownership during mat leave

[Lunamoon23]

Hello,

I'm currently on maternity leave and don't return until next year... i am management of a cafe, I received a phone call this afternoon from my boss who informed me they have just accepted a offer on the business (I knew it was up for sale, had been for 4 years), typically it had to happen now of all times... but that is what it is.

The people who've put the offer in have expressed they have no desire to change the operational hours of the business or how it works.
They also know I'm on my maternity leave and until when and that I'll be returning part time when I do.

It was agreed upon with the current owners/my current boss what my working days/hours would be upon return aswell as my yearly salary (reduced to reflect hours but still pretty generous). I've been with the company for 15 years.

My current boss explained to me that they've explained my knowledge and experience to the buyers, who were also regular customers and knew who I am (from serving them) and they seemed egar to know I was returning.

My question is; can the new owners change this scenario? (Hours/days/salary).

I'm feeling instantly anxious about it, because we've (myself and my husband) have worked all our plans around this.
Regarding the childminder we've found and financially too.
I also really don't want to have to leave (because I love where I work and who I work with, and know it like the back of my hand).

I'm also concerned about how it'd work, because the current owner also works within the business, back of house. So whenever I wouldn't have been in when back from Mat leave, they would be to over see things. However the new owners both have other busy jobs and only one of them plans to work 1 day within the business. Therefore changing the whole operations of the business. Which I guess, isn't really my issue, but it worries me again..

Thank you for any advice in advance.
I Will try to responds to any questions/advice as soon as possible but also caring for a newborn. ❤️

They can’t change your terms and conditions as such, as it would be void by the TUPE transfer (I’m assuming TUPE applies as it’s a business sale).

They’d have to consult with you if they were taking measures following the transfer - so there didn’t ought to be fundamental changes.

But if your mat leave is more than six months, you still wouldn’t have the right to necessarily automatically return to your old job if it isn’t practicable. But you’re entitled to one that’s no less favourable, and hours and pay are included in that.

@MrsPinkCock thank you for responding.

Yes I would assume TUPE would be in place, they are buying the business and operating it as it runs now.

So, because I am taking a full year (agreed with by the current owners) can the new owners look disfavourly upon that?

And so could they demote me from my managerial position but they'd still have to pay me the salary I am contracted too? X

As it's TUPE and as you're on maternity leave, you're quite well protected, in theory at least!
Given you enjoy your job and think that you're on quite a generous package, I think I would do my best to put this to the back of my mind, enjoy maternity leave and see what happens when you go back. Job hunting now seems to be jumping the gun.

@roselilylavender oh I have no intention of leaving currently or job hunting.

I was more concerned about what protections I have regarding my agreed reduced days/hours upon return from Maternity leave and newly agreed salary. (Both agreed with the current owners and when I return will be new owners) xxxxx

I assume you want honesty rather than comforting words?

Yes, you have some protections which are slightly better than might apply were you not on maternity leave. But that isn't the end of the story, because TUPE protects employees at the point of transfer, and continues to do so for what might be an indefinite period - or might not be. But TUPE doesn't stop there, because new owners are allowed to make changes for what are described as 'economic, technical or organisational' (ETO) reasons. and they are allowed to do so immediately after a TUPE has taken place. That doesn't mean they will make changes, that they must make changes, or even when they might make changes (it could be the day after, it could be tem years later, or any time at all) - it simply means that changes can be made if they are necessary for one of those reasons. What they cannot do is say that because you are on maternity leave they are making a change. But they might look at how the business is run and it's staffing structure and the fact that they won't be as hands on as the previous owner and make changes based on that. In fact, it sounds like at some level they will have to if they aren't going to be as hands on.

They will have to consult you, and your right to return to the same job or a job on the same or similar terms still apply - if such a job continues to exist. If it does not they would have to discuss alternatives, which may include redundancy. People assume that women on maternity leave cannot be made redundant. That is not true. It is fraught with dangers for the employer if they get it wrong, and they must be very clear that it is not something caused by your maternity leave. But it can be done.

You need to engage with the new owners, which is probably not what you hoped for during this time, but it is important that you engage in constructive conversations and work with them to have these discussions. That's the best anyone can tell you because until they say something needs to change, then it doesn't. But nobody can reassure you that there won't be any changes, or that they won't impact on you, because that simply wouldn't be true. The more aware you are of what they are thinking, then the better you can seek advice on anything that worries you.

Does TUPE apply? I suspect not as it’s just a change in shareholder so that would not trigger TUPE. I believe you remain employed on your current agreement and normal employment law applies.
if they have purchased the business via another company then TUPE will apply. On a
sImple sale of shares then there is no transfer.

Thank you @EmmaMaria that's really helpful. And all makes sense, just to dig a little further, because you seem to know what you're talking about...

So if the new owners, because they're taking a more hand off approach decided the days/hours I was working weren't enough to cover it, and they wanted to hire a additional manager, where would I stand in that situation. Could they demote me and remove my salary freely?

@Markham66 unfortunately I don't know if TUPE does apply... I've no idea with things regarding the sale of a business.
They are buying the lease, and business as a whole, name/equipment/reputation/staff etc. x

Hiya. You need to ask them what kind of sale. If it’s an asset sale then TUPE applies, if it’s share purchase then it would not normally apply as you remain employed by the same company just with new shareholders.

@Markham66 no it's not a share sale. Is this good news? X

Yes then TUPE applies. The undertaking is moving so the employment is protected. Good news.
Id say be pragmatic but you have good protections.

Can you join a union?

Too late - they won't represent a pre-existing issue.

@Lunamoon23 So if the new owners, because they're taking a more hand off approach decided the days/hours I was working weren't enough to cover it, and they wanted to hire a additional manager, where would I stand in that situation. Could they demote me and remove my salary freely?

No they can't. But if they decided that they needed a manager who worked more hours that would be a permitted change. They would need to discuss whether (assuming the hours were the only change) you wanted that role, and if not whether other options were available to them (such as job share). But in the end, if there was no work around available to them they could look to make your role redundant.

@EmmaMariaso as part of my maternity leave our supervisor to promoted to deputy manager and will stay in that role upon my return due to me returning part time. So does that again leave me in a good situation? (It was all contracted before I left for Mat leave.) I was also given a return to work contract upon my return which stipulated my new workings days/hours and salary. Does this leave me pretty well protected?

When you say be pragmatic what do you mean? Unfortunately I’m not In a position to talk directly to the new owners as of yet. It’s currently all communications between the two clients solicitors. But I am hoping to meet with them once the exchange has been made and I expect the current owners would promote that.

You seem to think that because you agreed new hours they can’t be changed
irrespective of what’s been agreed
with the suitable notice your our can be changed to accommodate the needs of the business

If you are taking over 6 months leave employers can move you to a comparable position anyway, nothing to do with the sale. I think at this point just enjoy your leave then once the acquisition is complete it would be wise to start a dialogue with the new owner

You are looking for guarantees that nobody can give you. In the sense that you want them - everything continues as you wish - nobody could promise that. Things change - even without a TUPE - and businesses must adapt with them or die. Even the new owners, at this stage, cannot promise that nothing will change, because they do not yet have everyday experience of the challenges they might face. And economic realities are changing hugely as we speak. What was the world when yoiu started your maternity leave, what it is now and what it mioght be when you return are different.

No I don’t ‘think’ that at all, hence the whole reason of this thread is to ask those questions to people that may have experience or knowledge within this department. I’ve no idea if I’m protected or not hence my worry.

You definitely CAN join a union, it’s not a pre existing issue as you’re already on maternity leave. And at the moment there isn’t actually an issue.

@Lunamoon23 I’ve no idea if I’m protected or not hence my worry

I know this is easy to say, but there is no point worrying. It will not change what happens. At this point in time you will be returning to work on the terms that you agreed with your employer. If that changes for any reason then you will be consulted about the changes and the options. As I said before if what you mean by "protection" is that nothing can possibly change then no - you are not "protected". But until such time as changes are proposed, and subject to the detail on any changes, and those changes being lawful (which they may be) then you will return on the agreed terms. Literally nobody can tell you anything different.

@EmmaMariaok, thank you for that. X

@LaurieFairyCakei may look into this, my sister was with a union at her old workplace and they were invaluable to her when she came up against it. Worth a phone call. Thank you xxxxx

They can change your hours by following a process = not protected

In a lot of ways this doesn’t change anything - no job is guaranteed forever. For a variety of reasons they might be looking to restructure, streamline, increase or decrease hours - any owner of a company at any time. You weren’t 100% protected with the old owners either - their lives could also change at any point.

Nothing could happen without a process though so you shouldn’t have by surprises.

I have only skimmed the thread, so apologies if I am repeating things that have already been said.

Whether TUPE applies depends on what has happened. If the business is a limited company, the new owners have bought the company, and you will still be employed by the same company, TUPE does not apply. However, TUPE does apply if you have a different employer.

You have a bit more protection if this is a TUPE transfer. They have to show that any change is for economic, technical or organisational reasons. They cannot make a change simply because of the transfer even if your contract allows for such changes.

Regardless of whether it is a TUPE transfer, any change can only be made with your consent. They could try to force things by threatening to sack you if you don't agree to changes, but that is likely to be unfair dismissal.

Regardless of whether it is a TUPE transfer, any change can only be made with your consent. They could try to force things by threatening to sack you if you don't agree to changes, but that is likely to be unfair dismissal.

That appears to be something of an overstatement. Changes should be consulted upon, but if the OP doesn't agree that does not mean they can't make those changes. They can make the OP redundant if the role that she has no longer suits their business needs. It is also possible to enforce reasonable changes by serving notice and offering the new contract - in which case the employee may have a claim for unfair dismissal, but that is by no means certain.