Verbal agreement

[Chridward]

I had a verbal agreement with my company`s old owners, in which they would look after the servicing and upkeep of my car, as part of my package.
This has been honoured for the past 12 years or so.
The company has recently been taken over, and it has become apparent that the new company were not made aware of this, although they have paid an invoice for a recent service to my car.
I believe i am about to recieve a letter, stating that this "benefit" will cease, as it is unfair to others, and it does not fit in with the new companies policies.
Obviousley i dont want to lose this arangement, but dont know where i stand. any ideas?

[enquirer]

Re: Verbal agreement

It has been going on for so long that it is now an integral part of your employment contract. If they want to terminate that arrangement, they will have to negotiate with you.

I assume that the car is used in some way for your employment.

[Tools]

Re: Verbal agreement

As enquirer states the employer has to consult with you.

This is classed as an implied term of your contract, this cannot be varied without the agreement of both parties.

If they decide to remove the "benefit" then you it may be possible to claim constructive dismissal if the breach is considered by an employment tribunal to be fundamental and significant, or , you may choose to sue the company for breach of contract in a civil court.

The only way they can unilaterally impose this change is by serving you notice to terminate the contract and offering to re-employ you on the new terms. This in effect would be terminating your employment, for which you could bring a case of unfair dismissal if they did not follow procedures.

You may also be able to negotiate an alternative value benefit, such as increase in salary to the value, additional paid holidays, etc.

[teaboy2]

Re: Verbal agreement

As Enquirer and Tools have said, as its been an implied term of your employment contract for so long it is now an integral part of your contract. It can not be changed without your agreement. If they did try to change it, then you would have grounds for constructive dismissal for breach of contract. Though personally you would be better of taking the breach of contract to civil court whilst carrying on with your employment, but by informing the company you are working the new terms under protest or refuse to accept the change to your terms of employment. As constructive dismissal claims would require that you resigned.

And as Tools said, the only way they can force the change is by terminating your employment, and re-employ you on new terms which would be unfair dismissal. Which they are unlikely to try and do to be honest as it will backfire on them.

Under TUPE your contract and all written and implied terms transfers over to the new company whom MUST honor all previous terms of your employment contract. Failure to do so, or changing/removing a term without the employees consent, is breach of contract.

If the new company was not informed of the implied term, then they should take it up with the previous company for failing to disclose it to them, whilst still honoring the terms in your contract fully.

In the mean time, you should get all the paperwork regarding the car servicing that shows the previously paid for it, together and keep it safe. As it may prove invaluable to you, if needed in court.

Personally, i would, as hinted to by Tools, use this situation to negotiate a, pay rise in exchange for removing the term, so that you do not suffer any financial loss as a result.

[Chridward]

Re: Verbal agreement

Wow, thank you for your replies, I really had no idea, and thought I was just gonna have to roll over and take it.
I have been informed that I will just get a letter telling me that the support will not continue, but I will update you as it comes.
I have not paid any tax on the "benefit", is this likely to be thrown at me as a threat to tell the tax man for instance? I get a feeling I will be bullied into accepting the situation, the HR girl is apparently "out to get me ", I think out of jealousy of having a deal she wishes she had.
Again, I am so grateful for your response.

[Tools]

Re: Verbal agreement

As far as I can make out, there is no tax liability for you, if they were to pay a mileage allowance for fuel etc then yes it would apply, but not for repairs.

We have a similar scheme at work where three workshop supervisors receive the same benefit on their own personal vehicles and I know for a fact they are not taxed on this