Employer asking me to switch companies.
Discussion
I currently work for a well established, profitable and safe company for 8 years, who have just set up another company intended to be more commercial.
They’re asking me to move over to the new company which obviously I have my concerns over as it’s a much higher risk company and has significantly more chance of going under than my current one. In addition the existing company is cash rich, very safe income streams and has a good redundancy policy so I’m safe if they decide to get rid. The new company will have debts etc and if they go under I guess I’ll be at the mercy of statutory minimums.
What suggestions would you have that can I negotiate to provide me with security in the event of new company collapsing I would be looked after? Would it also be wise to suggest a salary increase to compensate me with the higher risk I would be taking on? I’ve never been a contractor but should I consider it as I know the new company will be taking on contractors.
They have said that my service, and linked benefits etc would be transferred over to the new company.
Thanks for any advice guys.
They’re asking me to move over to the new company which obviously I have my concerns over as it’s a much higher risk company and has significantly more chance of going under than my current one. In addition the existing company is cash rich, very safe income streams and has a good redundancy policy so I’m safe if they decide to get rid. The new company will have debts etc and if they go under I guess I’ll be at the mercy of statutory minimums.
What suggestions would you have that can I negotiate to provide me with security in the event of new company collapsing I would be looked after? Would it also be wise to suggest a salary increase to compensate me with the higher risk I would be taking on? I’ve never been a contractor but should I consider it as I know the new company will be taking on contractors.
They have said that my service, and linked benefits etc would be transferred over to the new company.
Thanks for any advice guys.
This is one of those things where you need to look for reasons to do it rather than reasons to not. Being in at a new company at the start is highly advantageous as you will forever be one of the employees with the most experience there. Progression upwards is therefore more likely.
But it wise to be cautious.
Couple of things to look into;
Most importantly, you need to establish whether your just moving or leaving your current job and starting a new one.
You need to understand from them the ownership structure of the new company and the nature of the move. Have they simply set up a new company or done so with others? If the latter, who will you be reporting to? Ask to see their projections and consider if these are attainable. How much cash have they put in and how long will that last if it goes south? And if it does go south, could you go back to the original company?
It may well be a case of you simply moving across but your employer remains the same - so no different (essentially) to moving to a different department. That doesn't necessarily mean that you carry over all of the safety features you mention but should afford a bit of confidence in making the move.
If you're still worried, you could request a secondment for a year - that is you remain employed as you are at the moment on the same contract but work at the new company. This will give you a bit of time to satisfy yourself that all's good - or not.
But it wise to be cautious.
Couple of things to look into;
Most importantly, you need to establish whether your just moving or leaving your current job and starting a new one.
You need to understand from them the ownership structure of the new company and the nature of the move. Have they simply set up a new company or done so with others? If the latter, who will you be reporting to? Ask to see their projections and consider if these are attainable. How much cash have they put in and how long will that last if it goes south? And if it does go south, could you go back to the original company?
It may well be a case of you simply moving across but your employer remains the same - so no different (essentially) to moving to a different department. That doesn't necessarily mean that you carry over all of the safety features you mention but should afford a bit of confidence in making the move.
If you're still worried, you could request a secondment for a year - that is you remain employed as you are at the moment on the same contract but work at the new company. This will give you a bit of time to satisfy yourself that all's good - or not.
You need to ensure that, if you do move, TUPE rights apply to your new employment. In other words, you carry forward to the new job all the rights etc associated with your current employment.
Per ACAS -
TUPE regulations protect your rights as an employee when you transfer to a new employer.
TUPE stands for Transfer of Undertakings (Protection of Employment).
A 'TUPE transfer' happens when:
an organisation, or part of it, is transferred from one employer to another
a service is transferred to a new provider, for example when another company takes over the contract for office cleaning
You may be affected by a TUPE transfer if:
you're transferring from your current employer to a new employer
other employees are transferring to a new employer but you stay employed with your current employer and do not transfer
other employees have been transferred to the organisation you work for
Per ACAS -
TUPE regulations protect your rights as an employee when you transfer to a new employer.
TUPE stands for Transfer of Undertakings (Protection of Employment).
A 'TUPE transfer' happens when:
an organisation, or part of it, is transferred from one employer to another
a service is transferred to a new provider, for example when another company takes over the contract for office cleaning
You may be affected by a TUPE transfer if:
you're transferring from your current employer to a new employer
other employees are transferring to a new employer but you stay employed with your current employer and do not transfer
other employees have been transferred to the organisation you work for
They've confirmed that TUPE will apply.
Good point regarding being at the new company from day one, and that got me thinking about negotiating shares in it, although god knows how to start that conversation lol.
A secondment, or sabatical wouldn't be on the table I don't think, they want to completely separate this new company for legal/tax reasons and have it totally independant from the existing one.
Good point regarding being at the new company from day one, and that got me thinking about negotiating shares in it, although god knows how to start that conversation lol.
A secondment, or sabatical wouldn't be on the table I don't think, they want to completely separate this new company for legal/tax reasons and have it totally independant from the existing one.
audi321 said:
They've confirmed that TUPE will apply.
Good point regarding being at the new company from day one, and that got me thinking about negotiating shares in it, although god knows how to start that conversation lol.
A secondment, or sabatical wouldn't be on the table I don't think, they want to completely separate this new company for legal/tax reasons and have it totally independant from the existing one.
Start the equity conversation at the same time as the conversation around your market value , and specifically your market value to the company. Presumably they have asked you to move for a reason, and that reason is they see value in you being there. Look on it as a move to a new company, set your expectations accordingly, and be prepared to argue, as they will no doubt assume you will give up length of service etc for a chocolate biscuit.Good point regarding being at the new company from day one, and that got me thinking about negotiating shares in it, although god knows how to start that conversation lol.
A secondment, or sabatical wouldn't be on the table I don't think, they want to completely separate this new company for legal/tax reasons and have it totally independant from the existing one.
If it is TUPE, then it is an automatic transfer which means that you wouldn't have any say in the move. It sounds more like they want to treat you the same as though TUPE were applying even though it technically doesn't. It may not seem like an important distinction but will be in the future if you are ever in dispute with them and want to try and rely on TUPE protections.
My immediate thought was also secondment. Being seconded doesn't prevent them running the new company as a separate legal entity as the company's legal governance and status is independent of the employment status of who works there.
What is happening to your existing role? Maybe ask for a contractual obligation to redeploy you back to current company if it all goes wrong at the new place.
My immediate thought was also secondment. Being seconded doesn't prevent them running the new company as a separate legal entity as the company's legal governance and status is independent of the employment status of who works there.
What is happening to your existing role? Maybe ask for a contractual obligation to redeploy you back to current company if it all goes wrong at the new place.
audi321 said:
No. Or is that a joke that I’m not getting?
Apologies. A late Friday night attempt at humour (though with a serious thought at its core). From the Hitchhikers Guide to the Galaxy - https://everything2.com/title/B+ArkPersonally I am firmly in the B Ark category…
As has been said above, who you are employed by and who you do the day to day tasks for can be completely different.
I am employed by one ltd co but all my work is for a different ltd co who don’t actually employ anyone. Both part of the same group.
Key question is what happens if it all goes wrong but if we never take risks we never progress.
I am employed by one ltd co but all my work is for a different ltd co who don’t actually employ anyone. Both part of the same group.
Key question is what happens if it all goes wrong but if we never take risks we never progress.
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