ECJ makes employer-friendly TUPE decision: relief for transferees
By Kevin McCavish
The European Court of Justice (ECJ) has ruled that UK courts must adopt a ‘static’ rather than ‘dynamic’ approach to collectively agreed terms on a TUPE transfer. This is good news for transferees on a public sector outsourcing.
The long-running case of case, Alemo-Herron and others v Parkwood Leisure Ltd C-425/11, considered the Transfer of Undertakings (Protection of Employment) Regulations 1981 (TUPE), which implemented the Acquired Rights Directive 77/187/EEC in the UK. The directive has since been updated, as has TUPE. However, the same main principles continue to apply so the decision is relevant for the future.
Where there is a transfer of employees under TUPE, the new employer is bound by the existing terms of employees’ contracts of employment. If there is a ‘dynamic’ clause that provides that terms and conditions of employment will be in accordance with collective agreements negotiated ‘from time to time’, the UK courts previously held that TUPE renders such a clause enforceable against any new employer…
If you are registered and logged in to the site, click on the link below to read the rest of the Shoosmiths 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 Shoosmiths
News from The Lawyer
Briefings from Shoosmiths
Case highlights the importance of intercreditor agreements.
The European Commission has announced that it had used its fast-track settlement procedures to investigate and impose fines in respect of a parking heater cartel.
Analysis from The Lawyer
Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future
There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…