Parkwood Leisure v Alemo-Herron

Parkwood Leisure Limited v Alemo-Herron and others is an interesting TUPE case to watch. The Supreme Court has made a reference to the ECJ to determine whether transferring employees have the right to benefit from future pay rises agreed under collectively agreed-terms (referred to as the “dynamic” interpretation) or whether they can only benefit from collectively-agreed terms that apply at the date of the TUPE transfer and no subsequent changes to those terms which are negotiated (the “static” interpretation).

Whilst the decision of the ECJ is awaited, the Court of Appeal’s decision that only static contractual terms transfer has not been overruled.