Judith Harris of Addleshaw Goddard brings you a comprehensive update on the latest decisions that could affect your organisation, and provides advice on what to do about them.
In Celtec Ltd v Astley and others, the ECJ holds that Article 3(1) of the Business Transfers Directive (77/187/EC) must be interpreted as meaning that the "date of a transfer" is the date on which the employer's responsibility for carrying on the business of the unit transferred moves from the transferor to the transferee. That date is a particular point in time, which cannot be postponed to another date at the will of the transferor or transferee.
In Howard v (1) Millrise Ltd and another, the EAT holds that the correct interpretation of reg.10 (8A) of TUPE is that, if there is no trade union and no elected employee representatives, the employer is under a duty to inform and consult employees affected by the transfer of the undertaking.
In Dudley Bower Building Services Ltd v Lowe and others, the EAT holds that whether a stable economic entity exists in any given case, for the purposes of a transfer under the TUPE Regulations, is always a question of fact and degree.
In Glendale Managed Services v Graham and others the Court of Appeal holds that a transferee employer of a local authority undertaking was under a contractual obligation to increase an employee's pay in accordance with nationally agreed rates.
In Alamo Group (Europe) Ltd v (1) Tucker (2) Twose of Tiverton Ltd, the EAT holds that where a transferor fails to comply with its duty to inform and consult upon a relevant transfer, liability for that failure passes to the transferee under reg. 5 of the TUPE Regulations.