What will happen to me if the company i work for gets taken over by another company in the same market?

Question

The company trying to take over pays much less for the job I currently do. Will they have to honour my current contract, buy me out my contract, face redundancy or just accept the lower (50%) less wages?

Answer 1

quite simply you'll get laid off.

my friend worked his Bum off for a bank and was 'Head of Finance' for many years, the bank got taken over and he was made redundant, albiet with a pay cheque!

just goes to show at the end of the day everyone is just a number on the payroll!

Answer 2

Hello - I'm assuming you are based in the UK... If another company buys out your current employer then your employment is protected by TUPE. This means that the new owners must preserve your current terms and conditions of employment. There is the possibility of redundancy, but they would have to take into account your continuous service from your previous employer prior to the take over when calculating redundancy payments. Good luck, I hope everythign works out.

Answer 3

It depends on what they negotiated in the buy out.  Usually there is no consideration of anyone other than top managers.  The new company can pretty much do what they want.  If you are in a position that is paid less by the competition then that is not good.  You might want to start putting your resume around as there is a good chance you will either be replaced or given the option to work for less.  Good Luck

Answer 4

What I fail to understand, is why people in employment do not join a trade union. Did you think that you were special? That the market forces would not apply to you?

Now here you are in a dilemma, an no defence.

Answer 5

You have to face redundancy or accept the lower wage.  

Answer 6

They are most likely to simply lay you off.    How they handle you is determined by the sales contract, your present company should be negotiating on your behalf.    But they have no legal requirement to keep you on payroll.

Answer 7

I strongly suggest you look at the website TUPE-Transfer of undertakings(Protection of employment)

This will explain the why`s and wherefores of your situation.