Tuesday 20 November 2007

TUPE: Variation of Contract Terms

The Court of Appeal has, today, upheld the EAT's decision in Regent Security Services v Power.

The case is a departure from previous TUPE-law, holding that an employee is entitled to elect to rely on changes to terms and conditions of employment following a TUPE transfer. Previous authorities suggested that such changes were always void.

There remain areas of uncertainty following this decision. In particular, if an employee elects to rely on some of the beneficial changes, is s/he obliged to give credit for the detrimental changes? Is there a time period after which the employee is deemed to lose the right of election? These matters will no doubt be resolved in future cases.

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