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Transfer of undertakings: Contractor liable for public sector pay increases

This report relates to 1 case(s)

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    BET Catering Services Ltd v Ball and others EAT/637/96 (0 other reports)

In BET Catering Services Ltd v Ball and others 28.11.96 EAT 637/96 and Whent and others v T Cartledge Ltd [1997] IRLR 153, the EAT holds that the method of determining employees' pay expressly provided for in their contracts of employment with transferor local authorities - that is, by reference to pay rates contained in, and as varied from time to time by, collective agreements made between local authority employers and trade unions - is, by virtue of the Transfer of Undertakings Regulations, transferred to a transferee private contractor without modification or amendment. There is, says the EAT in BET Catering, "no conceptual difficulty" in an employer agreeing (or being treated as if having agreed) a system under which its own employees' wages are determined, directly or indirectly, by some third party or by a reference to the awards of third parties purporting to be directed to categories other than its own employees.