Ferguson v Astrea Asset Management Ltd Posted In: Case Law
Legal BodyEmployment Appeal Tribunal (UKEAT)
Type of Claim / JurisdictionTransfer of Undertaking (TUPE)
This month we report on a case where senior employees of a transferor deliberately enhanced the benefits and conditions with a view to passing them on to a transferee. How often has that happened to you, or a client transferee? Well, a recent UK EAT decision suggests the transferring employer/employee might not be able to get away with it.
The Ferguson case
Ferguson v Astrea Asset Management Ltd UKEAT/0139/19 is massively important. The EAT has held that when directors/employees improved their contractual benefits in view of a pending transfer, these variations were either void or fell foul of the EU abuse of law principle.
Reg 4(4) of TUPE, properly interpreted in a “broad
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