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.
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