Employees of the christian bookshop chain SPCK who brought tribunal claims after being sacked by the shops' new owners, have accepted a substantial offer of compensation, according to USDAW, the union representing them.
The saga following the transfer of the business to a charity run by two American brothers could be seen as a bad practice guide for employers, showing how not to handle a business transfer, variation of contracts, dismissals or the response to subsequent tribunal claims.
The bookshop chain was transferred to the Saint Stephen the Great Charitable Trust in 2006. Mark and Philip Brewer, the brothers running the trust, then tried to force through changes to the employees' contracts including increased hours with no extra pay, reduced holiday, reduced sick pay and the removal of part-time workers from the pension scheme.
The 32 staff who brought tribunal proceedings were sacked (many of them by email and fax) and told to contact the Texas Bankruptcy Court for unpaid wages. They were also told they could reapply for jobs with a different company (also controlled by the Brewer brothers) that now owned the shops.
The settlement was reached as a result of negotiations between USDAW and an interim manager of the trust appointed by the Charity Commission as a result of concerns about the management of the charity.
You can read more about the background to the dispute on the website of USDAW, the union representing the shopworkers.
There is also a blog dedicated to the SPCK/SSC saga which gives an interesting insight into the handling of the situation by the Brewer brothers.
Issues relating to employees' contractual rights after the transfer of a business can be difficult for employers to handle, although it might be difficult to handle it as badly as appears to have been done in this case. Subscribers to XpertHR have access to the following guidance that could have resulted in things going more smoothly:
Harmonising terms and conditions following the acquisition of a business - a guide in the XpertHR "how to" section.
Contract of employment - variation in the XpertHR employment law manual.
Termination of employment - insolvency in the XpertHR employment law manual.
The following FAQs are also answered on XpertHR:
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