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Union brings forward tribunal claim against Optivo over merger dispute

Unite has filed a tribunal complaint against newly merged landlord Optivo, claiming that it failed to properly consult employees during the merger process.

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Union brings forward tribunal claim against Optivo over merger dispute #ukhousing

Optivo said it had informed and consulted all staff properly and was surprised to hear that the union had issued the claim.

The landlord was formed following a merger between Amicus Horizon and Viridian in May. It became one of the UK’s largest social landlords, managing around 44,000 homes across London, the South East and the Midlands.

Unite is taking forward the claim on behalf of 25 workers formerly employed by Viridian, and said it is seeking “maximum possible financial compensation” for its members.

The union argues Optivo has wrongly denied that Transfer of Undertakings (Protection of Employment) (TUPE) laws apply to the employees.

TUPE regulations protect workers’ terms and conditions of employment when they are transferred to a new organisation.


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“Because Viridian/Optivo are denying that a ‘TUPE transfer’ has occurred, we believe that they have failed to inform and consult with the workforce appropriately with regard to, among other things, the implications of the transfer,” said Adam Lambert, regional officer at Unite.

“If the tribunal determines that TUPE indeed applies and any proposed changes are to our members’ detriment, Unite may be able to take further legal action to protect their employment.”

Optivo said it has not yet received the claim from the Employment Tribunal.

A spokesperson said: “We can confirm that in February 2017 Unite did query whether TUPE applied to the merger between Viridian and Amicus Horizon and we explained that it did not.

“Viridian remained an employer of the transferring employees within the legal entity of Optivo and there was no change in employer for the purposes of TUPE.

“We did not receive any further communication from Unite on this point and we are surprised that Unite has stated that a claim has now been issued.

“We can confirm that Optivo adheres to the legislation relating to TUPE and all staff are informed and consulted on a TUPE transfer.”

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