4

HR and Group companies

Hi all

I'm not really sure where to search for this topic, but as far as I can see there is nothing in the forums.

We are small, about 15 employees currently divided into two small companies. Soon we will be three companies and will be establishing the 3 companies under a Group.

In order to avoid having three sets of HR documents and different versions of contracts, HR manuals and so on, I would like to use all the same documents for all the companies, but just adjust the name or maybe a bit of wording here and there. 

Is it possible to employ someone under a certain company but with Group branded contract? Or do we need to keep the companies separate?

Obviously this isn't just an HR issue but we are looking at it from an HR perspective for the moment.

Many thanks 

Toria

318 views
  • Hi Toria

    Employees must have a clear employer - usually the same legal entity they work for but in your circumstances you can create a holding company / employing company and have them all have the same employer irrespective of which (specified / usually with mobility) operating company they're assigned to. This has to be clearly set out in contractual documentation and in written statement of main terms.

    Another option is of course just make all their t and c identical save for the name of the employer which is the operating company and (either way) run their HR from yourself in the common HR function.
  • In reply to David:

    Thank you David
    I think the second option sounds more suitable for us. I'm not that familiar with the language, but am guessing their contracts could be branded as the Group, so long as it states they are employed by the specific company.

    I really appreciate your time

    Best regards
  • In reply to Toria:

    Your guess is correct, Toria. I recently had to draft contracts along a similar line for our company ahead of a potential acquisition (it didn't come off, but the paperwork was ready if it had!). The branding is non-contractual, but the full name of the legal entity actually employing the employee should be clearly stated within any agreements.

    Otherwise, there's nothing stopping you from having a single set of "Group" documents covering all the companies in the group. For a prominent example of this in action, check out the website for the Persimmon Group, a UK construction giant whose policies I've recently been perusing as good examples to help guide some that we're developing around ethical business practices.
  • In reply to Robey:

    Amazing, thanks Robey, you're a star