subject: The heart complicates matters… [print this page] The heart complicates matters The heart complicates matters
Heart FM have recently announced their intentions to merge 33 of their stations across England and Wales, replacing them with what they describe as 15 "super stations". According to a recent report, Global Radio have stated that "The changes to Heart come as a result of the OFCOM regulation which enables local stations to co-locate and programme share" (BBC News, 2010).
Merger's generally occur between two (or more) separate companies who combine their efforts and resources to form a larger company. However, in some cases, businesses may decide to merge their satellite offices into one single, big regional premises.
What implications does this have for the company and their employees?
Ask yourself the question is it really a merger or is it a TUPE transfer?
Merging satellite offices can reduce the number of job losses by creating similar roles for employees, as apposed to losing the employees altogether. You may think that introducing a wave of redundancies is the easier, most financially viable option. Well think again! Making redundancies is both a time-consuming and expensive process. You have a statutory obligation to follow a progressive consultation procedure for at least 30 days in cases where 20-or-more employees are at risk of redundancy within a 90 day period.
What if TUPE applies? TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations 2006. A relevant transfer' can occur when a business, undertaking, or part of a company is transferred from one employer to another as a going concern (defined as a business transfer'). This can include cases where two companies cease to exist and combine to form a third.
Under TUPE, employees are protected from dismissal before or after a relevant transfer.
The new employer takes over the contracts of employment and inherits any outstanding liabilities incurred by the previous employer for any failure to observe the terms of their contracts or employment rights. The regulations impose limitations on the new employer, restricting varying contracts where the sole or principal reason is the transfer itself.
Consequently, if, in fact, it is a TUPE situation and not a merger, and you dismiss employees as a result of the transfer (either before or after the transfer) the employee may have the right to claim for unfair dismissal'.
Mergers and TUPE transfers are complex, can be difficult to implement, are time-consuming and incur a great deal of cost, if not managed in an effective manner. If you find yourself in such a situation, Russell HR Consulting provides expert knowledge in the practical application of employment law as well as providing employment law training and HR support services. For more information, visit our website at http://www.russellhrconsulting.co.uk/.
Russell HR Consulting offers HR services to businesses nationwide, including Buckinghamshire (covering Aylesbury, High Wycombe, Milton Keynes, Bedford, Banbury, Northampton, Towcester and surrounding areas), Nottinghamshire (covering Chesterfield, Mansfield, Nottingham, Sheffield, Worksop and surrounding areas) and Hampshire (covering Aldershot, Basingstoke, Reading, Farnborough, Fareham, Portsmouth, Southampton and surrounding areas).
