ECJ holds that transferees are not bound by post-transfer changes to collectively agreed terms of employment
The European Court of Justice (ECJ) has held that a transferee was not bound by post-transfer collectively agreed terms of employment. It was held that European law precluded UK courts from adopting a ‘dynamic’ rather than a ‘static’ interpretation of TUPE; put another way: transferees are bound by the collectively agreed terms in force at the date of transfer, but not by any subsequent collectively agreed terms (Alemo-Herron & Ors v Parkwood Leisure Ltd).
In this case, the claimants argued that their new employer, Parkwood Leisure, was bound by collectively agreed terms negotiated after the transfer date. Under their contracts of employment with their original employer, the London Borough of Lewisham, they benefited from terms ‘in accordance with collective agreements negotiated from time to time by the National Joint Council for Local Government [NJC]’. The NJC negotiated a new collective agreement relating to pay after the transfer date and the claimants argued that they were entitled to a pay increase in line with this new agreement. Parkwood refused to abide by the new NJC terms and the claimants brought claims for unlawful deductions from wages…
If you are registered and logged in to the site, click on the link below to read the rest of the Addleshaw Goddard briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Addleshaw Goddard
News from The Lawyer
Briefings from Addleshaw Goddard
Addleshaw Goddard looks back at the key legislative developments for 2014.
Addleshaw Goddard gives an overview of future legislative developements for the coming year.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
Could Slater & Gordon achieve its stated aim of becoming a top consumer brand by acquiring Pannone?