The company I work for is being taken over. What now?
7 October 2021
As an employee of an organisation, your terms of employment are laid down in your contract. This is an agreement between you and your employer. But what happens if another company takes over your employer? As a result of such a so-called transfer of undertaking, you will have to deal with another employer. What does that mean for your employment conditions? We explain.
What does a transfer of undertaking mean for your terms of employment?
It sometimes happens that (part of) a company is taken over. In the event of a transfer of undertaking, you as an employee automatically go to the new employer. The same applies according to the law for your rights and obligations. The agreements in your employment contract therefore continue to apply and you do not have to sign a new contract. You also include your number of years of service: useful for a possible anniversary, but also, for example, for the amount of any transition payment. Only your pension agreements are not always automatically included.
A new contract?
In principle, you take your contract and terms of employment with you to your new employer. But sometimes you are offered a new agreement, for example because this is stipulated in the collective labor agreement. Then find out carefully what your new terms of employment mean for you and make sure that your original date of employment is stated in your new contract. Sometimes your new employer wants to harmonize all employment conditions after a takeover, so that the old and new staff have the same rights and obligations. This is allowed under certain conditions.
Want to know more?
Do you want to know whether there is a transfer of undertaking or will you be offered a new employment contract? Please contact our legal specialists. They will explain exactly what you are entitled to and will check your new contract for you. This way you know exactly what your new terms of employment mean for you and what you can still negotiate about. Our Service Center is available every working day from 8.00 am to 18.00 pm via firstname.lastname@example.org and 0345 851 963.