Help on information - LRA section 197 and ring fenced

[Tiger0107]

Good day to all.

I need some clarity with regards to company/employee being ring fenced after section 197 move.
What or where can I find definition of what exactly does ring fencing mean and how and if it protects employee?

Reason I am asking this, I was moved from company A to company B via Section 197. So that means all benefits remain intact and just the employer changes.
If the benefit did not exist at Company B they created a similar benefit. So we were still getting benefits given by company A and following policies from Comany A.

With regards to ring fenced, does it mean that during a certain period of time the company cannot change any of those benefits or policies around benefits?


Regards
Kuvz

[Dave A]

With regards to ring fenced, does it mean that during a certain period of time the company cannot change any of those benefits or policies around benefits?

By "benefits", are you referring to pension or provident fund benefits?

[Tiger0107]

By "benefits", are you referring to pension or provident fund benefits?

Hi.
Not just that.. It all benefits that Company A employee had.. for example cell phone contract, Short term incentive, rebates, etc....

[Dave A]

There are some basic principles, and some exceptions -
The basic departure point is the employment is deemed continuous in terms of length of service, and that the employment terms with the new employer may not be less favourable than with the old employer for 12 months, although certain changes are allowed sooner under certain conditions (e.g. you might be moved from one pension fund to another provided certain conditions are met).

At first glance it might seem the simplest way to ensure the new conditions are not less favourable than the old is to continue with the same employment conditions exactly as before. However, there may be circumstances where this is not a simple matter at all - especially if there is a significant difference between the conditions of employment for the same post between existing staff of the buying company and the incoming staff from the purchased company. (And remember - who's got the better existing deal might cut either way).