There is a recent ruling (Whitney v. Monster Worldwide Ltd) that is going to make HR folks shudder a bit. Typically occupational pension scheme do not convert to the new employer as part of the TUPE undertaking, but in this case it happened. Here is the scenario.
1. Employee worked form employer B, and were part for a pension scheme that was closed in 1989. He and the other employees were given a “no Detriment” pension guarantee.
2. The guarantee occurred verbally, and there is no paper record
3. Employer A buys Employer B, and in that transactions they promise to honour previous employer commitments”including pay and benefits”
4. The employee brought claim saying based on the guarantee that his pension should have gone up every year.
5. The employee Won
So how do you do due diligence in a TUPE transfer on previous verbal commitments? Fun times! So if any of my EMEA colleagues want to comment – please do!