HML has started a voluntary redundancy programme after GMAC-RFC decided to move its mortgage book inhouse.
The GMAC-RFC book is moving to Bracknell and all staff working on the contract have the option to move with it under Transfer of Undertakings
(Protection of Employment) regulations.
TUPE rights apply when the identity of your employer changes during a business transfer. Julian Wells, marketing director at HML, says: “Employees working on the GMAC-RFC mortgage account have TUPE rights. We have started a voluntary redundancy programme.
We hope to avoid making any compulsory redundancies.”
GMAC-RFC’s mortgage book amounts to £3.6bn – 12% of HML’s total £44bn loan book.
GMAC-RFC’s decision to move inhouse comes after the former lender was taken over by Fortress Investment Group in April this year.
Talks are being held between GMAC-RFC and HML about restructuring the two firms’ relationship, which includes the possibility of GMACRFC
using HML’s systems inhouse.
The total assets under HML management amounted to £44.9bn at the end of 2009 compared with £47.1bn in 2008.
But profits plunged from £15.8m in 2007 to £8m in 2008 and £3.4m in 2009. Yet the number of employees only fell from a 2007 high of 1,954 to
1,837 in 2009.
Earlier this year the company moved into a purpose-built head office in Skipton.