The Advocate General (AG) has stated that it is possible under EU law - for a private-sector transferee to be legally obliged to comply with a change (e.g. a pay increase) made to the terms of employees transferred from the public sector - even though the change was agreed by a public-sector negotiating body - after the TUPE transfer had taken place.
The AG added that a national court should determine whether the legal obligation would breach the employer's right to conduct a business under Art. 16 of the Charter of Fundamental Rights of the European Union.
Source: Alemo-Herron v Parkwood Leisure Ltd (C-426/11).
Comment
If the ECJ agrees with the AG's opinion - it is likely that the Government will limit the period during which a transferee must comply with a term derived from a collective agreement to one year - after the TUPE transfer: Art 3(3) of the TUPE Directive.
The AG added that a national court should determine whether the legal obligation would breach the employer's right to conduct a business under Art. 16 of the Charter of Fundamental Rights of the European Union.
Source: Alemo-Herron v Parkwood Leisure Ltd (C-426/11).
Comment
If the ECJ agrees with the AG's opinion - it is likely that the Government will limit the period during which a transferee must comply with a term derived from a collective agreement to one year - after the TUPE transfer: Art 3(3) of the TUPE Directive.
1 comment:
On 18 July 2013, the ECJ disagreed with the Advocate General's opinion.
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