Company take over - new contract - Tier 2

[annath]

Hi there, I would really appreciate if someone can advice on the following:

I'm currently on Tier 2 General. Two months ago the company I work for (company A) got acquired by company B. Company B is a bigger company but they don't currently hold a sponsorship licence. Company B plans to move most employees from company A.

They have notified the HO of the merger and I was told they applied for a license. They were advised that the process will take up to 18 weeks. In the meantime, they just sent me a new contract (for company B) and would like me to sign it asap. The role is the same (other terms too, expect for the actual company!).

I am not sure if I should sign it before hearing back from the HO? As far as I am concerned, my original company A still exists (and will be at least for the next few months) and I am worried that by signing a new contract I am breaking the terms of my current visa, by technically working for a different company

Is it safe for me to sign the new contract?

Thanks in advance!

[manci]

If company A reported the merger through the SMS and company B made an in-time valid application for a sponsor licence. and the licence is granted in due course, there is no problem you can continue working for company B.

Your employment contract is not an immigration issue.

However, if for any reason company B's application for a sponsor licence is refused your permission (visa) will be cancelled (curtailed). For this reason IMHO you should ask for a rider to be included in the employment contract you are asked to sign making it subject to your immigration status. It is normal practice to have such a clause in the employment contract of employees under immigration control.

[annath]

Thank you Manci! Appreciate you taking time to reply.

Sorry to trouble you more, do you know if the in-time application for sponsorship licence (for company B) needs to be done from the moment of take over (when my former boss sells his shares) or from the moment they wish to transfer me? Technically until now I was still working for the original company A...

Thanks!!

[manci]

Company A must report the merger via the SMS within 20 working days .

Assuming you'll move to Company B under TUPE they will have to apply for a sponsor licence within 20 working days of the move.

TUPE is the Transfer of Undertakings (Protection of Employment) Regulations 2006 and it means that when you transfer to Company B your terms and conditions of employment remain the same as they were at Company A.

The guidance for sponsors containing the above rules is here:
https://assets.publishing.service.gov.u ... 0_v1.0.pdf

[annath]

Understood. Thank you very much for your replies, Manci!