Past perks permitted?

You do not make it clear as to the basis upon which you are buying this business. One possibility is that you have bought the shares, if it is a limited company, or that you have simply bought the assets. If it is the former, then there has been no change of employer and the existing employment contracts remain as they are.

If you have a genuine reason as to why employment terms should be changed, you can enter into a negotiation process with the employees. If the staff will agree, the contracts can be changed with little problem.

However, if staff do not agree, you will have to consider the value of the changes. Determine whether prudence in cutting the bonus and holiday scheme, would pale into insignificance when compared to the costs of a number of staff leaving, and the perennial issue of potential Tribunals for unfair (constructive) dismissal.

If you have bought the assets of the business you are therefore a "new" employer and the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) 2006, will almost certainly apply. In which case, the staff transferring to you will transfer with their contracts as they currently stand.

You would not be able to change contractual terms for a reason connected with the transfer e.g. if you simply want to standardise terms with your existing workforce. However, if you have a good reason not related to the transfer i.e. to save jobs, you might be able to change the terms as I have described above.

- Peter Done, Managing director, Peninsula Business Services

- Have your query answered by the experts tel - 020 7484 9808, fax - 020 7484 9989, e-mail - richard.adams@incisivemedia.com.