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Wages after contract transfer

3 replies

lou031205 · 10/02/2010 17:34

DH worked for company A & was paid 'monthly in arrears'. That is, he worked all month, then got a paycheck at the end of the month.

Company B bought company A out. DH refused to sign the contract offered because to do so put him on inferior T&Cs so he was protected under TUP(E) Regulations.

He was approached a fortnight ago, and told that they wanted to shut down the payroll for Company A, but can't because DH hadn't transferred. If they kept all of his T&Cs except for the employer name & weekly pay, would he sign a new contract. He was assured that the only difference would be being paid weekly rather than monthly.

The contract came with a covering letter, stating as discussed all T&C's remain except transfer to Company B as employer & weekly pay. The contract states 'pay is weekly on Friday in arrears'. DH was told verbally that it would take effect from 01/02/10.

Friday 05/02/2010 came - no pay. We thought perhaps they had decided to wait until next month. Today, DH phoned his work, and was told it is 'arrears and week-in-hand'. i.e. He will be paid on Friday this week for last week's work! Nowhere does his contract mention 'week-in-hand'.

Can they do this?? We would never have agreed to the sign-over if we were told that we would effectively end up losing a week of pay until he leaves the business. We will struggle to pay the bills as we have 3 children and he already earns under £15k.

OP posts:
lou031205 · 10/02/2010 22:51

Bump

OP posts:
flowerybeanbag · 11/02/2010 11:15

No they can't. If the contract says weekly in arrears and that was the basis upon which your DH signed it, then by failing to pay him as the contract says they are breaching the contract.

I would suggest he write to them saying that he signed a contract stating he would be paid weekly in arrears, can they please confirm they will be honouring this contract. If they do not plan to honour this contract he will not consider himself bound by that contract either and will assume his previous contract remains in force.

See where that gets him.

lou031205 · 11/02/2010 15:47

Thank you flowerybeanbag. I thought not. I have spoken to DH, but he doesn't feel able to contest it.

He is not very assertive, and has already written a letter regarding TUP(E) protection & inferior T&C, which the lawyers said they would respond to (in November) but haven't - result is that he didn't sign new contract.

He has also had to refuse to rescind his flexible working agreement in a meeting with the MD.

They have offered DH a 'sub' of half-a-week's wages until payday, so DH felt they were being reasonable I pointed out that they were offering to lend him his money!

Housing benefit have said that as he is technicallt still earning the money, the fact that he won't receive it doesn't affect our benefit amount, so we will just have to struggle

Thanks again for your advice.

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