Ferguson v Astrea Asset Management Ltd [2020]
Posted In: Case Law-
Decision Number
UKEAT/0139/19 -
Legal Body
Employment Appeal Tribunal (UKEAT) -
Type of Claim / Jurisdiction
Transfer of Undertaking (TUPE)
Introduction
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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Dr John McMullen
Spencer West LLP
The main content of this article was provided by Dr John McMullen. Contact telephone number is 07769299610 or email drjohn.mcmullen@spencer-west.com
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