TUPE: Transferee not bound by transferor's post-transfer pay agreement
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Parkwood Leisure Ltd v Alemo-Herron and others [2010] EWCA Civ 24 CA (0 other reports)
The conclusion of this case was that the European Court of Justice decided in Alemo-Herron and others v Parkwood Leisure Ltd Case C-426/11 ECJ that a transferee is not bound by "dynamic" clauses in contracts of employment referring to collective agreements negotiated after the transfer, where that transferee cannot participate in the negotiation process.
In Parkwood Leisure Ltd v Alemo-Herron and others [2010] EWCA Civ 24 CA, the Court of Appeal held that, where the transfer of an undertaking occurs, and the transferring employees' contracts contain a clause referring to a collective agreement between the transferor and the relevant union, the transferee is not obliged to recognise wage increases agreed by the transferor and the union after the transfer has occurred resulting from negotiations to which the transferee was not a party.
