The Court of Appeal has today handed down its decision in Gutridge v Sodexo . The case concerns equal pay rights where women are subject to a TUPE transfer .
The Court of Appeal confirms that:-
1. claims for equal pay losses accumulated during employment up to the date of transfer of the undertaking to the transferee, must be brought against the transferee within 6 months after the date of the transfer; and
2. claims for losses after the date of the transfer can proceed against the new employer (the transferee) for up to 6 years running from the date of the claim. Claims must be issued within 6 months of the termination of that employment.
This has important implications for businesses. For example, it is vital that employers who are taking over public sector service contracts appreciate that they will continue to be liable for any equal pay claims long after the transfer has taken place – in fact for so long as the employees transferred remain employed. The value of those claims will be based on the earnings of comparators who were employed by the public authority before the transfer took place.
Link to case:
http://www.bailii.org/ew/cases/EWCA/Civ/2009/729.html
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