RegisterLog In

Forced transfer of employee to an external company (outsourced vendor)

Pat
Member
Fri, 27 Nov 2015 12:00:58 AM  (Last updated: Fri, 27 Nov 2015 03:25:16 PM)

Dear Sir,

I would like to seek your advise on a situation. Employee A works for a technical support department in Company V.

Company V decides to outsource the entire support function (which Employee A belongs to) to a vendor, namely Company H.

Company V now wants to transfer Employee A to Company H (the vendor) with similar salary packages. Employee A is told by Company V the following:-

1. Employee A must accept the transfer.

2. If any employee does not accept the transfer to Company H, they will be terminated without any compensation.

Please advise the following:-

1. Does Company V have the right to force the transfer to Employee A to Company H (the vendor)?

2. Does Employee A have the right to refuse the transfer?

3. With the technical support department in Company V being closed down, is employee A considered redundant?

4. Does Company V have the right to terminate Employee A without any redundancy compensation if Employee A refuses to accept the transfer?

It will be much appreciated if you can also advise further on the appropriate actions that Employee A  can take while approaching the transfer acceptance dateline.

Thanks and regards,

Pat

KL Siew
Administrator
Fri, 27 Nov 2015 12:40:55 PM

I would suggest that you read up the Employment(Termination and Layoff Benefits)Regulations especially Regulation 4  for guidance. If you still require more info, you can always consult the Labour Department for official advice.

Pat
Member
Fri, 27 Nov 2015 02:16:18 PM

Hi Siew,

Thanks for the reply. I will read the reference notes you suggested. 

Basically, I would just like to know if Company V treat this as a redundancy and when the employee does not accept the transfer, can Company V really terminate without any Termination benefits? Their explanation is that when the employer has found the employee a job in another company with similar salary, the employee should take the transfer. If the employee does not accept the transfer, the company has the right not pay any "termination and laid off benefits". Is it right of Company V to do this? 

And it will be much appreciated if you can advise what options does Employee A have when he decides not to accept the transfer.

Regards,

Pat

KL Siew
Administrator
Fri, 27 Nov 2015 03:25:16 PM

1. First of all, can you reproduce the letter from company V that was given to the staff of the technical support department about the matter?

2. Is there a transfer clause in the contract of service stating that staff can be subject to transfer?

3. What is the relationship between company V and company H?

4. Has company H made written offer to employ the staff from company V with the same terms and conditions?

  This topic is closed