1st experience of TUPE....

[Winchester12]

Hello,

The Co I work for has been acquired by another and as a result I've learned about TUPE rather quickly! One aspect I can't seem to find a definitive answer on (prior to the new contracts being issued any time now) is car allowances and Co cars.

I've had a car allowance for over 5 years which a) adds to my monthly income, and b) saves me a huge amount of annual tax. I get the impression that Co cars are the norm at 'the new place' essentially meaning that a) I'll lose my monthly allowance and b) my income will reduce as a result of benefit tax being deducted.

Would somebody be kind enough to confirm/deny that I'll have a choice/no choice in which route I choose OR have to take please? If I'm forced down the Co car road then my income will be quite severely affected - is this allowed and/or could I insist on a salary increase to cover the resultant loss?

Thank you.

[ULA]

If you have a contractual right to the benefit of a car/car allowance, then the transferee employer will be required by TUPE to continue to provide that benefit after your transfer. However, where any contractual arrangement includes a power to vary or withdraw a benefit, then the transferee employer would generally be able to rely on those powers. TUPE simply preserves any existing contractual benefits, it does not improve them.

Even if you have a contractual entitlement to participate in the car/car allowance scheme if your current employer reserves discretion as to the scope or terms of the benefits then the transferee employer would be obliged to continue to provide that particular benefit, but will maintain discretion over its scope.

I suggest therefore that you look at the terms of the car/car allowance scheme policy. Most company car/car allowance scheme policies I have sent put in place do have a clause reserving the employer the right to vary the scope or terms of the policy.

[Winchester12]

However, where any contractual arrangement includes a power to vary or withdraw a benefit, then the transferee employer would generally be able to rely on those powers.

I suggest therefore that you look at the terms of the car/car allowance scheme policy. Most company car/car allowance scheme policies I have sent put in place do have a clause reserving the employer the right to vary the scope or terms of the policy.

Many thanks!

My original & existing contract simply states in one paragraph that I will receive a car allowance of £x per month plus reimbursement for business mileage. There is no clause referring specifically to vehicles however under 'General' the following is quoted: "The Company may add, delete, vary or modify any of your terms of your employment".

As 'the Company' has now been acquired would this clause be automatically transferred and therefore 'entitle' the new one to enforce changes? Hope that makes sense....

[ULA]

Its a very wide clause basically giving the company the right to vary any of the terms of employment. However that will carry across to your new company.

It is normal that if a company has cars/car allowances then there is also an accompanying policy document so it would be worth going through that to also check what provision there is for making a changes.

Also be aware that if the new company can prove an economic, technical or organisational (ETO) reason for making a change to terms and conditions of employment and do this via a fair process then they can make changes.

[Winchester12]

Its a very wide clause basically giving the company the right to vary any of the terms of employment. However that will carry across to your new company.

It is normal that if a company has cars/car allowances then there is also an accompanying policy document so it would be worth going through that to also check what provision there is for making a changes.

Also be aware that if the new company can prove an economic, technical or organisational (ETO) reason for making a change to terms and conditions of employment and do this via a fair process then they can make changes.

My thanks again....