TUPE and Health Insurance

[freezeframe]

Hi,

I hope someone can help with this. Ive worked for a company for over 10 years, ive always received health insurance as part of my package. Its written in my contract. I just pay the tax on the benefit.

2 years ago I was TUPED to a different part of the same parent company, I did not sign a new contract. In the process they agreed to honour our health insurance for 2 years. After which we would be offered, what we were told would be, a similar company scheme we could join. We expected there would be a cost but could leverage the company discount. Unfortunately this was verbally in the consultation process.

The 2 years of health insurance is now up and they have advised us that they are removing the benefit and as compensation we will receive 2 years of what the benefit costs the company (total £1k). They have advised we can join the same health provider with an introductory offer of 2 months free cover and £100 high street vouchers. Other than that, the cost of the insurance is at a standard rate - £3k per year for myself. No corporate discount.

Weve complained and basically been told "thats all youre getting", Is there anything more I can do about this?

Unfortunately our TUPE representative didnt fight our corner very well at the time and I feel we were misled.

Thanks in advance

FF

[ULA]

Although your health care benefit was written into your contract was it subject to alteration or changes at management discretion?

Were there any notes taken of the meeting/s held with the TUPE representative about what would be offered after two years in terms of health benefits?

Has the company given any other reason for changing the benefit other than the two years is up i.e. Do you know whether other employees of the company who were not TUPE'd over enjoyed the benefits of health insurance?

[freezeframe]

Thanks for the reply Ula,

My contact states "Subject to the member of staff fulfilling the eligibility requirements, the company will provide medical insurance package for the benefit of the member of staff, Full details are available from Personnel"

From the tupe notes "The company is within its rights to amend the scheme or replace the scheme. Additionally, the company can withdraw the current scheme in 2 years and offer a different scheme, provided that there is access to a scheme (or employees are compensated for its withdrawal)" - the issue is that the scheme they are offering is not comparable. The compensation they have offered is only what it costs them for 2 years.

Employees who were not tupe'd still receive the same health insurance package. They have not provided a reason other than the 2 years are up and they cant maintain the cover indefinitely, so this is what is happening..

I possible didnt explain the scenario that well. I worked for [little company] which was bought by [big company]. My team and several others after a few years were tupe'd to [big company] while still working at [little company]. Not everyone in the dept was tupe'd to [big company]

Thanks again for your help with this

[ULA]

What was stated in the details of the medical insurance package available from Personnel, in particular the ability, at management discretion to change the terms of the benefit?

Can I just check the TUPE notes that you refer to, were they part of the consultation with the employee representative prior to the transfer and were they considered "measure" that the new employer would take on transfer or in this case 2 years after?

I am not sure I understand the situation with regard to the purchase by the big company this of itself is a TUPE situation and would mean that all staff in the small company where subject to TUPE.

[Manxman]

Doesn't TUPE only cover the T&Cs of the initial transfer? After the transfer is over (and in this case it's 2 years after) what's to stop the employer changing any or all of the T&Cs? I'm sure lots of employers have stopped (or are considering stopping) health insurance on cost or other grounds.

The OP can't compel the company to maintain health insurance - unless they want to try suing them. (The alternative offer from the employer sounds reasonable to me and better than nothing).

[freezeframe]

What was stated in the details of the medical insurance package available from Personnel, in particular the ability, at management discretion to change the terms of the benefit?

Unfortunately I dont that information.

Can I just check the TUPE notes that you refer to, were they part of the consultation with the employee representative prior to the transfer and were they considered "measure" that the new employer would take on transfer or in this case 2 years after?

These notes were relayed to the staff from the TUPE representative and although they didnt use the phrase, I believe they were considered measure.

I am not sure I understand the situation with regard to the purchase by the big company this of itself is a TUPE situation and would mean that all staff in the small company where subject to TUPE.

I dont really understand the legal side of it but the little company was bought by the big company, the little company carried on as before but with a new parent company. Branding on the little company changed to include big company name but our contracts didnt. It was only after a few years they decided to TUPE some of my dept from the little company to the big company. The rest of the dept still remain at the little company.

[ULA]

To cover off what Manxman has said where an employee has a contractual right to a benefit, the transferee employer is required
by TUPE to continue to provide that benefit after the employee’s 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 this. This latter point was the reason i wanted to try and find out what was in the details of the scheme held with Personnel.

If as part of the negotiation prior to TUPE one of the measures to be taken by the transferee employer was that the existing benefit would only continue for a period of two years and that at that point they would "offer a different scheme, provided that there is access to a scheme (or employees are compensated for its withdrawal)". Then this was a known situation at the time of TUPE. Effectively the two year period for the introduction of this measure has now arrived and the company are dealing with it by way of compensation rather than providing an alternate scheme.

It may be worth having a call to ACAS and seeing what their view is on the situation.