The Retention of Employment Model 


One mechanism that has been used successfully in the past in the NHS, local government, and the education sector to enable employees to remain employed by their employer under their existing terms and conditions (including pensions) even though they go to work for a different organisation after the transfer date, is the Retention of Employment Model (ROEM). The model was developed in response to campaigning by public services union Unison to preserve NHS staff terms and conditions. This approach requires joint cooperation and high levels of trust between the employer and the union, and careful legal advice. Every step must be followed strictly to avoid employment being transferred automatically to a new employer by operation of the law, and to avoid risks to the employees’ contract terms. The ROEM model involves the following steps:


• the parties follow all the normal steps in relation to a TUPE transfer, including as to information and consultation;


• a date is fixed for the TUPE transfer;


• immediately before the transfer, the employees formally “object” to the transfer (see above);


• immediately after objection, the employees sign new contracts with the transferor replicating their pre-objection terms and conditions, including as to pension, but containing a secondment clause. 


• Employees are seconded to work for the new service provider but they retain the benefit of the terms and conditions they enjoyed before objecting to the transfer, with their continuity of employment preserved.