What are my rights as an employee in a case like this one?

Q. Is it legal for a company to bring in new investors yet keep employees in the dark?

What does the law say about the duty of the employer and rights of the employees in such a case?

If the new investor requests the management to terminate current contracts and pay dues, what dues are liable in this case especially if the employees are members of a registered pension scheme? If the new investor opts to remain with the current employees, what should employees do in terms of protecting their final dues in the future?

Like any other change at the work place, new shareholding creates just as much anxiety, and the employer has the responsibility to keep employees informed of any change that may affect their terms of employment. There is no law that prohibits an employer from changing shareholding, but depending on the nature of the business, there are industry regulators that may need to be involved for approvals.

If there is reason to be concerned about your jobs, my advice is that you engage the management and raise your concerns and take note your rights, which I highlight below.

As an employee, your rights are protected under the Employment Act 2007. The new employer is expected to take up existing contracts. This means you would transfer your service to the new employer and carry on with your work. If the new shareholder brings in changes requiring new terms of employment and you become unsuitable for the new roles, you have a right to terminate your employment on redundancy grounds under Section 40 of the Employment Act and be compensated for loss of service. In this arrangement, you would also be compensated for pending leave and notice as per your contract.

In some cases, some employers may allow employees to apply for new roles under new contract terms after service payment; in such a case, you will have no claim on past service since it will have been paid.

Your pension is protected and regulated by the Retirements Benefits Authority (RBA) and is managed independently from the employer. If your employer has been complying with the RBA requirements and providing returns as required, you have nothing to worry about.

Your new employer will in any case be required to provide pension for employees and since the business is changing hands, it will make sense to continue the existing pension plan. Speak to your employer to alley your fears, and involve your union or seek legal counsel if you feel the process lacks due transparency.