A new provider took over: can it align my pay with everyone else?

Start with the transfer, not the calendar

Pinsent Masons’ April 2025 analysis addresses changes after a covered TUPE transfer. Merely waiting a fixed period does not remove the protection of transferred terms. First establish whether there was a covered transfer and why the employer wants the change. A normal internal promotion or group assignment is not necessarily TUPE. This dated law-firm explanation is a starting point for examining the transfer and contract, not a decision that a change is lawful or void.

Identify the claimed basis without treating it as permission

Ask whether the employer claims the change is unrelated to the transfer, relies on an economic, technical or organisational reason involving workforce changes, or relies on an existing contractual flexibility. These are matters to assess, not automatic permissions. Existing contractual agreement, the actual workforce effect and the permitted scope can still matter. Applying a policy to everyone does not by itself prove that harmonising terms is unrelated to the transfer.

What to record before the change lands

Before responding to any proposed change, gather the facts. Write down the name of the previous employer, the incoming provider, the transfer date, the information you were given about the transfer, and your old terms and conditions. Then list each proposed change and the explanation the employer gave. This record will help you compare the stated reason with the actual effect on you and your colleagues. Remember that an ordinary internal promotion or a group assignment is not necessarily a TUPE transfer, so ask the employer which transfer arrangement they say applies to you. Keep your written questions and the employer's replies, and note any pay difference that results from the change.

Ask the employer the right questions

When the employer proposes a change, ask directly: Is this change related to the transfer, or is it part of a wider policy that applies to all employees? What is the economic, technical or organisational reason, if any? Which contract clause do you rely on to make this change? How many employees are affected, and are they all TUPE transferees or a broader group? Compare the employer's explanation with the people and terms affected. Do not assume that waiting a year makes a transfer-related pay reduction permissible. If the employer says the change is unrelated to the transfer, ask for evidence that the policy applies equally to non-transferred employees.

A hypothetical example: harmonising pay after a contract change

Hypothetical illustration: a service changes provider and transferred workers retain their earlier terms. Later, the new provider proposes aligning shifts and bonuses with its existing staff. Record the old and new terms and ask: “What is the real reason for this change, which transferred terms are affected, and what contractual or TUPE basis is relied on?” Compare the explanation with the actual proposal. A company-wide label or an elapsed year cannot alone settle that assessment.

Before objecting, accepting or leaving

Take the transfer notices, full terms, proposed change and pay comparison for advice on your response. Ask how to record an objection, what work is expected meanwhile and which remedy or deadline applies to an actual loss or dismissal. Do not assume every benefit reduction is an unlawful wage deduction, or that resigning is needed to preserve rights. Timing and conduct can affect the position, so assess the specific situation before acting.

Next steps if the issue is unresolved

If you have asked the employer for the reason and the contractual basis, and you still believe the change is transfer-related and unlawful, the next step is to seek advice from an employment solicitor or an independent adviser. Bring your written record of the transfer, the proposed change, the employer's explanation, and any pay difference. Ask specifically: 'Is this change by reason of the transfer, and does the employer's stated reason fall within the applicable legal conditions?' If you are considering resigning or refusing to accept the change, get advice first, because the timing and manner of your response can affect your rights. Do not assume that a challenge will succeed; the outcome depends on the facts and the evidence you have preserved.

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