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Company Merge

Hi. the company I work for is merging with another company. The companies work closely together at present and the current owners will remain in place under one company once the merger has taken happened. All employees are to remain in place as all are required due to geographical locations. Would this therefore be a straight forward TUPE situation? Please could someone advise of process, procedure, meetings required with staff, letters required, contracts, timescales etc? There are less than 50 employees in total. Thank you in advance, Julie

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  • Hi Julie

    Another simple question from you that may need a very long and complex answer....

    If one company here has simply bought or acquired ownership and control of another then nothing changes for the employees of the taken-over company except the identity of their employer and the TUPE Regulations do not further apply.

    But if the new owners then make changes as a result of the transfer, such as merging and rationalising departmental functions and staffing then TUPE Protection does very much apply to the whole process and to employees’ existing terms and conditions of employment.

    Whichever particular scenario applies, there should be fullest possible consultation with employees, starting with the rationale in employment law about whether or not the change in ownership is covered by the TUPE Regulations and outlining the intentions of the new owners and the implications for employees.
  • The key to TUPE applying will be (a) how the merger was implemented - how legally the two companies came together (b) who remains or becomes the new employer - one or other of the two companies or a new third company and (c) what is the economic entity here.

    It’s entirely possible ( without knowing the above ) that TUPE may not apply at all initially or it may “apply” to employees from just one of the two companies.

    But it sounds like you aren’t planning on making any changes so I would treat this as an exercise in engagement and communication.

    I would start with 1 or 2 all team meetings. To set the vision, explain the move and address any immediate concerns. Then ( particularly if TUPE applies) set up a staff forum to discuss and collective issues. Finally I would get managed to hold 1-2-1s with their staff. It may all look over kill but getting this off the ground is worth all the effort.

    Then confirm it all in writing that from X the new employer is Y but nothing else changes and the worlds good.