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Transfer of undertakings: Fears about post-transfer terms not a breach of trust

This report relates to 1 case(s)

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    Sita (GB) Ltd v Burton and others [1997] IRLR 501 EAT (0 other reports)

A transferor employer cannot breach its implied contractual duty of trust and confidence merely because its employees fear that the prospective transferee intends to implement substantial changes in their terms and conditions of employment following the transfer of the undertaking, holds the EAT in Sita (GB) Ltd v Burton and others [1997] IRLR 501. This is at least in part because the Transfer of Undertakings Regulations would provide an "absolute answer" by way of remedy to any attempt by the transferee to alter those terms unlawfully after the transfer.