An Employment Appeals Tribunal has ruled that where there is a case of unequal pay while an employee is employed by the transferor organisation, the right of equal pay will transfer under TUPE to the organisation taking on the member of staff.
The ruling comes after the case of Sodexho vs Gutridge, where female hospital cleaners who had been transferred to Sodexho from an NHS Trust wanted equivalent pay to that of male maintenance workers who did not transfer.
Emma Burrows, partner at Trowers & Hamlins, said: "This new ruling will have significant implications for the growing number of organisations looking to merge or even just share resources to deliver their services more effectively to improve profits."
She added: "Employees are able to claim up to six years' worth of back payments to make amends for any pay inequality. This could prove to be very expensive so it is imperative that new employers take all the relevant steps to limit their liability when transfers take place."
Staff transferred under TUPE take equal pay claims with them
Employers who take on staff through TUPE could be liable for up to six years of unequal pay claims, according to legal experts.
