No real surprise at the decision of the Court of Appeal in Alemo-Herron and others v Parkwood Leisure Ltd.
The case was brought by 23 Claimants who were employed by London Borough of Lewisham until 2002 when the department was outsourced to CCL. There was a further TUPE transfer in 2004 from CCL to Parkwood Leisure.
The employee’s contracts provided that their terms and conditions were in accordance with collective agreements negotiated by the National Joint Council for Local Government Services. The 23 Claimants, therefore, argued that Parkwood was bound by pay increases agreed between the NJC and the trade unions after it had become the employer.
The ET found in favour of the employer. The Claimants appealed and the EAT reversed the decision to say that new employers can be bound by negotiations between the old employer and trade unions despite not being party to those negotiations.
Common sense has now prevailed and the Court of Appeal has reinstated the decision of the original ET. Listen out for the sighs of relief from employers!