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Company restructure - contract not updated in 10 years - questions!

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  • Company restructure - contract not updated in 10 years - questions!

    Hi all,

    I have been working in the same company for about 15 years, the last contract I signed was in 2004. Since then my salary, role and responsibilities have changed significantly.

    Around 16 months ago the company went through a significant restructure and my role was changed again into a much larger role - from no line reports to a team of around 7, control of high profile global projects as opposed to UK ones, extra hours, more pressure etc. I was told this was going to be the job and a new job role and salary was just around the corner. Some of my colleagues roles were made redundant during this process.

    This went on for about 10 months, then I went on Maternity leave, which I am now halfway through.

    Since being on Maternity leave it turns out there has been another restructure and they have offered me a new role. However - still no job description, contract, salary increase etc. They haven't told me if I will be managing people, for example - it's all undocumented and up in the air. And there is no set time frame for contracts/salary/job descriptions to be disclosed. They are basically stringing me on, again - it's been about 15 months now. My ideal situation would be walking away with a redundancy package.

    So my questions are:

    1: In terms of Customary Practice - does this supersede an out of date employment contract at all times? For example, at what point can you say that the role you are asking me to do is so different to my actual contracted role? If nothing is documented about what I do now how would this be proven or argued?

    2: Would having a team for 12 months, then not having a team (all the while without changes to contracts etc) constitute as a significant change to job role? An email was sent out from management confirming my position to the rest of the team, but nothing official to me from HR.


    3: How long is it realistic to be asked to perform a new role, or a different one, without an updated contract or job description? For example, my original work contract states some foreign travel possible, but I didn't have a family then. Is this still realistically binding?

    4: Given the above info, would I be in a position to be able to angle for redundancy based on significant changes to my role - IE that the one I am now being offered is so different to my contracted role that it is unacceptable to me? Would it have to be different to the one i've been doing for the previous 12 months, or different to the years before that?

    Thanks a lot for reading - sorry it was such a long post!

    AC
    Tags: None

  • #2
    Re: Company restructure - contract not updated in 10 years - questions!

    Originally posted by ac2014 View Post
    Hi all,

    I have been working in the same company for about 15 years, the last contract I signed was in 2004. Since then my salary, role and responsibilities have changed significantly.

    Around 16 months ago the company went through a significant restructure and my role was changed again into a much larger role - from no line reports to a team of around 7, control of high profile global projects as opposed to UK ones, extra hours, more pressure etc. I was told this was going to be the job and a new job role and salary was just around the corner. Some of my colleagues roles were made redundant during this process.

    This went on for about 10 months, then I went on Maternity leave, which I am now halfway through.

    Since being on Maternity leave it turns out there has been another restructure and they have offered me a new role. However - still no job description, contract, salary increase etc. They haven't told me if I will be managing people, for example - it's all undocumented and up in the air. And there is no set time frame for contracts/salary/job descriptions to be disclosed. They are basically stringing me on, again - it's been about 15 months now. My ideal situation would be walking away with a redundancy package. How can they have offered you a new role when the alleged new role has no job title, description, salary etc? They can't as there's nothing on the table for you to give any new contract or contractual terms any consideration (Consideration defined by contract i.e "Contract Consideration"). In order for an offer to have been made their must be something their for the other party to consider!

    So my questions are:

    1: In terms of Customary Practice - does this supersede an out of date employment contract at all times? For example, at what point can you say that the role you are asking me to do is so different to my actual contracted role? If nothing is documented about what I do now how would this be proven or argued?

    Customary Practice does supersede the terms of a contract, though the new duties, salary etc may not be written terms they are implied terms that supersede previous written or implied terms as a result of customary practice!

    2: Would having a team for 12 months, then not having a team (all the while without changes to contracts etc) constitute as a significant change to job role? An email was sent out from management confirming my position to the rest of the team, but nothing official to me from HR.


    Yes it does! Just taking on those duties and carrying them out over a period of 12 months make them implied terms of your contract and replace previous terms or can be additional terms!

    3: How long is it realistic to be asked to perform a new role, or a different one, without an updated contract or job description? For example, my original work contract states some foreign travel possible, but I didn't have a family then. Is this still realistically binding?

    Yes and No, depends on how much your role has changed from your original role. By the sounds of things your job title was changed and not just your role. Though as you have a family now it would be unreasonable to suddenly have that term of your original contract enforced by the employer when your contract has varied so significantly and customary practice (time without such term being enforced) could well mean the term is no longer valid term of your contract as a result of it never being expected of you, and due to your role changing significantly!

    4: Given the above info, would I be in a position to be able to angle for redundancy based on significant changes to my role - IE that the one I am now being offered is so different to my contracted role that it is unacceptable to me? Would it have to be different to the one i've been doing for the previous 12 months, or different to the years before that?

    If your returning for your standard maternity leave period then you are entitled to return to the same job, or be offered a similar role with same pay and benefits/entitlements etc. IF they can not do this then you would likely have a case for unfair dismissal, possibly even sexual discrimination.

    Thanks a lot for reading - sorry it was such a long post!

    AC
    Regarding your query on redundancy, they should have given you this as an option too when they offered you the new position - MY advice to you given the complex nature of your contract and circumstances would be to speak to ACAS (they can act as mediators between you and the company) or go see a local solicitor that specialises in employment law and maternity rights. Because as much as we here can help you our advise would always be limited and therefore not all details will be covered by posting on this forum, and its those details that can be the difference to success and failure in employment law disputes etc.
    Please note that this advice is given informally, without liability and without prejudice. Always seek the advice of an insured qualified professional. All my legal and nonlegal knowledge comes from either here (LB),my own personal research and experience and/or as the result of necessity as an Employer and Businessman.

    By using my advice in any form, you agreed to waive all rights to hold myself or any persons representing myself of any liability.

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    I AM SO GOING TO GET BANNED BY CEL FOR POSTING terrible humour POSTS.

    The Governess; 6th March 2012 GRRRRRR

    Comment


    • #3
      Re: Company restructure - contract not updated in 10 years - questions!

      Originally posted by teaboy2 View Post
      Regarding your query on redundancy, they should have given you this as an option too when they offered you the new position - MY advice to you given the complex nature of your contract and circumstances would be to speak to ACAS (they can act as mediators between you and the company) or go see a local solicitor that specialises in employment law and maternity rights. Because as much as we here can help you our advise would always be limited and therefore not all details will be covered by posting on this forum, and its those details that can be the difference to success and failure in employment law disputes etc.
      Thank you very much for the reply, information and advice - you have certainly helped me a lot.

      Thanks again!

      Comment


      • #4
        Re: Company restructure - contract not updated in 10 years - questions!

        Originally posted by ac2014 View Post
        Thank you very much for the reply, information and advice - you have certainly helped me a lot.

        Thanks again!

        Hello!

        Back again!

        About to go back to work after my maternity. I have not enjoyed the period at all due to work.

        A few weeks back they give me a pay rise - as part of the normal yearly review - of 8% ("the highest in the company!").

        To recap, company (FTSE250 company) changed the global structure, many roles made redundant but not mine as they wanted me to do something else - higher level. No new contract/terms or pay rise, all verbally promised but nothing delivered. I started doing the role, which was a lot more pressure and responsibility. Found out I was pregnant, did the new role (with new title and line reports etc communicated to the business) for 6 months - all on the "never never" in terms of new package. "it will happen next month" - "next month, board has put a stop of pay rises" - "2 months, new director is starting" - new director starts, doesn't do anything.

        Went on maternity. Old manager restructured, my role is into a new team within the business with a new manager. Still no new terms and conditions.

        I have a meeting with my new manager (old one is doing something else after the company restructure) next week, which I have requested, where I am going to ask the following:

        1: I was "transitioned" into this role during the company restructure - new title, line reports (10) where I had none before, European rather than global responsibility, greater programme of work to manage. I was never offered a new role officially, but it was all done gradually without a consultation period.

        ***should there have been a consultation? If I just ended up doing the role does this mean I accepted it or should I have had options? If so does the case for a consultation period still stand or has the time passed?***


        2: Therefore - if I don't want this new job, does my old job exist?

        ***It doesn't - total company restructure has happened, however could they give me something similar to my old role? It's complicated as for the last 12 months I've been doing this "new role" - which seems to me to make it customary practice - but there was nothing official about it, no process. So am I now in a position where even if my old role can be given an equivalent role - no line reports etc - how does this fit with customary practice and what I have been doing the last 12 months? By putting me back into the old role are they making my current role redundant? Very confused!!***


        3: Am I being offered a new role? Or are you just going to make what I am doing official with a job spec? If so, what are the terms and conditions - salary, package etc - of the new role?

        ***can I ask for this? Does the fact I've been doing it already mean I can't now go back and say "you should have offered me options if my old role was made redundant"?***

        4: If I don't want to take the new role, is my old role still available?

        I want out, basically. They have treated me terribly, whilst pregnant and on maternity. No changes to contract, no job spec, nothing - except a sudden 8% pay increase. Do I have the legal basis to say to them - you made my old role redundant, you should have given me a consultation period and a chance to consider this new role? Or do they have me cornered by the fact that I gradually transitioned into it, even though nothing was official. I've basically moved up the ladder, got a team of 10 and a much bigger role without any option to decide if I wanted to do it or not. And then been given a small pay rise that is 5.5% above standard (that actually leaves me worse off as it alters my child care vouchers!)

        Many thanks! Sorry for the long post, I really have no idea what I am doing here!

        Comment

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