Employment
Employers could be liable for up to six years of unequal pay claims following an employment appeals tribunal ruling.
In Sodexho v Gutridge it was ruled that in cases of unequal pay when an employee is employed by the transferor organisation, the right to equal pay transfers under TUPE to the organisation taking on the member of staff .
Emma Burrows, a partner at Trowers & Hamlin, says: “Employers will need to consider this ruling whenever they take over the provision of a service previously provided by another organisation. It will obviously be very difficult for employers facing such claims taking on employees under TUPE to determine the pay levels of employees who remained at the transferor’s organisation.” She continues: “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.”
