Return of a Lost Sheep-a client comes back.

At the end of 2018 we lost a North American client that had been with us for 2 years or so employing staff through Compandben in Australia, Spain and UK. We lost the Australia and UK business but kept the Spanish business. Now effective May 2019 the client is bringing back the Australia and UK employees into our employment service, so we will be employing staff in 3 countries on behalf of the client.

We are delighted of course but there is an unfortunate twist. One of the employees was on a UK scheme for childcare vouchers; the employee makes a "salary sacrifice" from Gross salary: this is paid to a childcare voucher firm: and the employee received vouchers which can be used for the purchase of childcare. It is a tax effective scheme. Unfortunately the service is no longer available to new staff. The employee that benefited from the scheme is deemed to have left us 31/12/2018 and now cant benefit from the vouchers as the UK government has abaandoned the salary sacrifice element. Employers can still grant the childcare vouchers but it is a taxable benefit. If the employee had stayed with Compandben International Ltd he would have been able to continue benefiting from the service.

John Tinsley

Director Compandben Companies

Cambridge UK and Geneva Switzerland

+44 79 58 173 708 +41 79 285 9713

[email protected]

www.compandben.com

Skype: john.tinsley01


John Tinsley

Director @ Le Cheminant International | Global HR Solutions

5y

The employee was terminated at the end of 2018, hired by another company for 4 months and has come back to us. So TUPE doesn't  apply. I wish it did.  

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Linda Pullan

Freelance Payroll Consultant, Trainer and Technical Writer

5y

I agree with Simon's thoughts on this.

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P Simon Parsons M.Sc FCIPPdip MBCS

Director UK Compliance Strategies at SD Worx

5y

Is that correct John? If it is a continuous employment situation and TUPE applies, then the right would continue. So is it a completely new employment or a continuation? If this were purely payroll service then there would be no problem as they joined the scheme before closure and there is no 12 month break. So not sure what you are saying is correct unless this employee has been sacked/terminated from the prior arrangement and the new employment is entirely separate employment.  Is there a continuous service entitlement. If 

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