Clarkslegal LLP - Solicitors in Reading and London

Legal Updates

TUPE static not dynamic

29 January 2010 #Employment


The Court of Appeal has held in Parkwood Leisure Ltd v Alemo-Herron (2010) that a contractual entitlement to a pay rise, agreed in collective agreement negotiations to which the transferee was not a party, did not bind the transferee following a TUPE transfer. 

The Court followed the ECJ`s decision in Werhof v Freeway Traffic Systems Gmbh & Co KG, that terms which refer to a collective agreement negotiated by a third party, only operate until the agreement expires, terminates or is replaced.  Consequently, contracts are to be given a `static` rather than `dynamic` interpretation.  As a result, third party negotiations as part of a collective bargaining process, which occur after a transfer, are not binding on the transferee under TUPE.

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at employmentunit@clarkslegal.com by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.

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