ASK HR: Our company has new owners, will our jobs be affected?

Q. Our company just got acquired by new owners. We are worried about our jobs. What if they fire us and employ new members of staff? Are there rules that protect employees in such situations?

Change of ownership is not a simple process for everyone and organisations that value their employees take time to communicate this process clearly.

Your contract is with your current employer and they have a legal responsibility to determine and advise how your service will be treated once the changeover takes place.

The Kenya Employment Act 2007, Part V1 section 40 gives clear guidelines on the minimum requirements to be met including the consultation process with the employee or their representative for those under unions.

During such consultations, you should be briefed on what this change means, if all jobs are transferable to new owners, if any jobs have to end, which jobs are affected, what new roles have come up and when to apply for them, what jobs are at risk of redundancy and when the process will start and end.

There are usually three options in a situation where company changes ownership. The first is to transfer the services of all employees to the new employer.

When services are transferred, you get a letter that confirms this, and assures you that all past service since joining the company is recognised going forward.

This means that your date of employment does not change especially in reference to benefits that are service related such as pension, long service recognition and redundancy.

The second option is a redundancy pay off, on grounds that the new employer would not require your services. This means you would be paid a redundancy settlement for unexpected end of service.

The minimum redundancy package is two weeks’ salary for every completed year of service but good employers have different policies to ensure their employees are well compensated.

The last option is twofold. You accept a redundancy offer from your current employer and receive payment for all accumulated years of service, then sign a new contract with new owners where your service is deemed to be effective from start of this new contract.

Go ahead and initiate a meeting if your employer is not proactive. You know the options to discuss and evaluate which one works best for you and your colleagues and make the right decision.

Instead of feeling hopeless, you can turn this situation around and make it work for everyone.

The Kenya Employment Act gives clear guidelines on the minimum requirements to be met by both parties.