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.
In Bateman and others v Asda Stores Ltd EAT/0221/09, the EAT held that the employer was entitled to change its employees' pay arrangements without their consent because it had reserved a clear contractual right to make unilateral variations to their terms and conditions of employment.
The Employment Appeal Tribunal has held that a sleep-in payment was not an allowance for the purpose of the national minimum wage. Therefore it should not be excluded from the calculation of the hourly rate paid by the employer.