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December 5, 2020

Collective Agreements Transfer

Filed under: Uncategorized — ירון @ 7:14 pm

These changes to the TUPE apply to transfers that take place after January 31, 2014 and provide certainty to the approach that collective agreements have a static impact on workers` contracts. For transfers that took place before 31 January 2014, the old TUPE rules and the application of the decision in Alemo-Herron by the British courts remain relevant. However, if the new employer participates in collective bargaining after the transfer, the agreed changes are mandatory for the new employer under the terms of the collective agreement. Recent TUPE reforms contain new measures to change collective agreements. The European Court of Justice (ECJ) has ruled in an important case concerning the impact of industry or the terms of sectoral bargaining after the sale of a company. This case is particularly important for private companies involved in outsourcing work in the public sector. The ECJ decided that the ARD should not be read in such a way as to prevent a “dynamic” clause in all circumstances. However, the judgment states that this depends on the purchaser`s ability to “effectively assert his interests in a contractual procedure in which he participates and to negotiate the aspects that determine the changes in the working conditions of his employees for the purpose of his future economic activity.” The new employer is still bound by the collective agreement in force at the time of the transfer, but not to the changes that the outgoing employer negotiated and agreed upon after the transfer date if the new employer is not involved in the process. In the event of a transfer, these agreements are transferred to the incoming employer. The ECJ stressed that, in this context, ARD is not only aimed at protecting workers, but at ensuring a balance between their interests and those of the purchaser. In particular, the purchaser must be able to make the necessary adjustments and modifications to continue its activities. The ECJ concluded that the German regulations complied with this requirement, since the purchaser was entitled to “consensual or unilaterally adapt the working conditions that existed at the time of the transfer”.

The impact of a transfer of TUPE on collective agreements The terms and conditions of employment of police personnel are largely determined by collective agreements obtained either at the national level or on the ground. For new aspiring employers, the following issues should be raised in due diligence or otherwise with the former employer on the extent of the terms of collective agreements: two amendments to the DUPE regulations determine the date on which the terms set out in the collective agreements can be changed in a transfer situation. For employers, it is important to be sensitive to the transfer of collective agreements. They need to look not only at the legal implications of rule changes, but also at all labour relations considerations. The amended TUPE rules give new employers the certainty that they will not be affected by decisions on the terms and conditions of their employees that will be made after the transfer, unless they themselves have been involved in those decisions.

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