Company Being Sold, No Consultation, Benefit Removed
Discussion
Was told informally about a month ago the company was being sold, I wanted to buy it but the valuation was laughable and been told its way over what I was offered it for.
Firstly, my company car isn't being renewed. I've had one for over 16 years, forms part of my employment package. The company changed hands 7 years ago and despite nagging, we were never given written contracts. From my research, 'Custom & Practice' suggests it is pretty much as good as a written contract due to the years been paid, tax, national insurance, BIK etc
I tried to negotiate, my company car is my only proper means of transport. Barely acknowledged and cited times are tough and need to economise.
Escalated it to a formal grievance requesting a meeting in 5 days, this was back on the 8th July. No response of any note, just that they'll try and sort a replacement until company sold but wont be the same. Fob off emails, so I've contacted ACAS for early conciliation.
Seems the owner may be signed a sales contract today, but we've not been consulted in writing at all, no timescales or anything.
Firstly, my company car isn't being renewed. I've had one for over 16 years, forms part of my employment package. The company changed hands 7 years ago and despite nagging, we were never given written contracts. From my research, 'Custom & Practice' suggests it is pretty much as good as a written contract due to the years been paid, tax, national insurance, BIK etc
I tried to negotiate, my company car is my only proper means of transport. Barely acknowledged and cited times are tough and need to economise.
Escalated it to a formal grievance requesting a meeting in 5 days, this was back on the 8th July. No response of any note, just that they'll try and sort a replacement until company sold but wont be the same. Fob off emails, so I've contacted ACAS for early conciliation.
Seems the owner may be signed a sales contract today, but we've not been consulted in writing at all, no timescales or anything.
How many people impacted? Do you have/are you in Union? Might be good to gather people together to, united front. Downside it will label you as a troublemaker 
.
TUPE will protect to a certain extent, however I have heard that new companies can still make pretty significant changes citing economic pressures - employee still needs to agree and I assume if they don't its a redundancy situation or constructive dismissal. I work in IT not employment law though! (though I have worked with TUPE process).
.TUPE will protect to a certain extent, however I have heard that new companies can still make pretty significant changes citing economic pressures - employee still needs to agree and I assume if they don't its a redundancy situation or constructive dismissal. I work in IT not employment law though! (though I have worked with TUPE process).
Quags said:
That's my thoughts too, I think they're trying to avoid the car thing by waiting til it's sold, I'm writing weekly that I'm ready willing and able to work but I don't agree with the removal of my benefit and will therefore be working under protest.
Do you still have use of your car? If so, your only gripe is that it's not being renewed on time?I'd keep my head down until the dust has settled so as to not be first first on the list for a P45.
Couple of things that may help to shape your thinking.
If you wanted to check, then find the Company Registration number that the company had at the time you joined and then check what that number is today. If it's the same, then it's the same company regardless of who owns it.
A company car is provided because it is deemed necessary for you to do your job. If they are withdrawing the car and you still need access to a vehicle to do your job then they need to offer an alternative (business milage expenses, for example).
It may have been an attractive benefit to you 16 years ago but (EVs excepted), is a benefit that comes at a cost to you in the form of BiK tax. It would be worth you doing a thorough analysis of this in terms of the impact on you as it may well be a fight you'd be better off not fighting!
Sounds harsh but the fact that it is your only means of transport is of no concern to the company from a legal and even moral perspective.
Quags said:
From my research, 'Custom & Practice' suggests it is pretty much as good as a written contract due to the years been paid, tax, national insurance, BIK etc
If the business sale was a simple share sale (where the owner changes but the employer - the company - remains the same), there would have been no need to issue a new Contract of Employment. And if the same is happening now, then again, no new contract is needed. That which you originally had when you started remains valid. TUPE would not apply. Any changes to the substance of your original contract of employment would require consultation and be dealt with in the form of contract amendment, not replacement. If you wanted to check, then find the Company Registration number that the company had at the time you joined and then check what that number is today. If it's the same, then it's the same company regardless of who owns it.
Quags said:
Seems the owner may be signed a sales contract today, but we've not been consulted in writing at all, no timescales or anything.
Assuming it's a share sale, there is no legal requirement for consultation. Morally, perhaps, but certainly no mandated obligation to do so.Quags said:
my company car is my only proper means of transport. Barely acknowledged and cited times are tough and need to economise
You will need to refer to your original CoE to assess if you are due any direct compensation for the loss of the company car. It's possible but I'd wager not. A company car is provided because it is deemed necessary for you to do your job. If they are withdrawing the car and you still need access to a vehicle to do your job then they need to offer an alternative (business milage expenses, for example).
It may have been an attractive benefit to you 16 years ago but (EVs excepted), is a benefit that comes at a cost to you in the form of BiK tax. It would be worth you doing a thorough analysis of this in terms of the impact on you as it may well be a fight you'd be better off not fighting!
Sounds harsh but the fact that it is your only means of transport is of no concern to the company from a legal and even moral perspective.
Edited by StevieBee on Wednesday 22 July 07:57
The owner is a Sole trader, so the entire company will be sold not a share sale. It's a small company, no union.
I will have no use of my car from next Tuesday, it's gone.
My gripe is the unilateral variation of my contract without consultation or discussion. The removal of a core benefit/tool. I work in a rural area. Aside from that, it's worth £600 pm so an effective pay cut. To my understanding, any alternative must be of comparable spec or financial.
The car in question is a PHEV so it's worked ideally BIK wise.
I believe it is the companies concern, it was negotiated when I started, a reason for taking the job in the first place.
I will have no use of my car from next Tuesday, it's gone.
My gripe is the unilateral variation of my contract without consultation or discussion. The removal of a core benefit/tool. I work in a rural area. Aside from that, it's worth £600 pm so an effective pay cut. To my understanding, any alternative must be of comparable spec or financial.
The car in question is a PHEV so it's worked ideally BIK wise.
I believe it is the companies concern, it was negotiated when I started, a reason for taking the job in the first place.
I am assuming you will want to argue TUPE.... Part of the question will be how you feel about losing said benefit, is it worth really fighting for etc..
ETA at 600pm loss of benefit you have a possible constructive dismissal claim but again, how strongly do you feel about working there, fighting this etc.
ETA at 600pm loss of benefit you have a possible constructive dismissal claim but again, how strongly do you feel about working there, fighting this etc.
Jasandjules said:
I am assuming you will want to argue TUPE.... Part of the question will be how you feel about losing said benefit, is it worth really fighting for etc..
ETA at 600pm loss of benefit you have a possible constructive dismissal claim but again, how strongly do you feel about working there, fighting this etc.
It's worth it to me, and I'd be happy to remain here if was sorted and owner had gone. I'm not trying to stir anything up, but this is really not right. ETA at 600pm loss of benefit you have a possible constructive dismissal claim but again, how strongly do you feel about working there, fighting this etc.
Quags said:
Jasandjules said:
I am assuming you will want to argue TUPE.... Part of the question will be how you feel about losing said benefit, is it worth really fighting for etc..
ETA at 600pm loss of benefit you have a possible constructive dismissal claim but again, how strongly do you feel about working there, fighting this etc.
It's worth it to me, and I'd be happy to remain here if was sorted and owner had gone. I'm not trying to stir anything up, but this is really not right. ETA at 600pm loss of benefit you have a possible constructive dismissal claim but again, how strongly do you feel about working there, fighting this etc.
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