TUPE: Protecting Enhanced Severance Terms

In 2018, we were contacted by a number of members who, a number of years ago, had been transferred under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) from Lloyds Bank to Mitie.

Mitie had announced that these staff were to be made redundant on the statutory terms only and not in accordance with the Lloyds Bank enhanced redundancy terms which they carried with then under the TUPE transfer. This reduced their redundancy payments from around £20,000 to approximately £5,000 each.

Issues around TUPE arise in cases we deal with on a regular basis when employers try, usually blatantly, to avoid their obligations under the TUPE regulations. They assume that people are ignorant of their legal rights and will not be advised professionally. That’s why this issue should interest all members.

This issue goes right to the heart of whether or not the Lloyds Bank severance terms are contractual; certainly, all the evidence suggests they are contractual and that by failing to pay staff in accordance with the Lloyds enhanced severance terms, Mitie has breached their contracts of employment.

Accordingly, the Union has filed Employment Tribunal claims against Mitie on behalf of members and we now await a Judgement in the case which will be heard later this year. We will keep members updated on the progress in the case.

As I have said, this case will have important implications for all staff TUPE transferred to new employers, who subsequently face redundancy. If you think that this situation or one like it could affect you, please contact the Union’s Advice Team immediately on 01234 716005 (Choose Option 1).