14/07/2010
The EAT in Worrall v Wilmott Dixon Partnership has decided that:
- An employee must be informed about the incorporation of a term of a collective agreement into his contract.
- An easily obtainable document such as a handbook will not satisfy this need to be informed.
As the employer had not brought a term in a collective agreement providing for enhanced redundancy pay to the Claimants' notice or had it agreed with them, the EAT held that the term had not been incorporated into the Claimants' contracts. This affected the employees redundancy payments who would have lost out had the collective agreement been incorporated after a TUPE transfer (under TUPE incorporated collective agreements are frozen on transfer).
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