A ruling by the Employment Appeal Tribunal (EAT) in Sodexho Ltd v Gutridge and others means that employers taking on staff under the Transfer of Undertaking (Protection of Employment) Regulations 2006 (TUPE) may be liable for the continuation of unequal pay practices of the previous employer. Ms Gutridge and her co-claimants were female cleaners at Hartlepool General Hospital whose employment transferred from the NHS Trust to outsourcing provider Sodexho in 2001. Five years later, Ms Gutridge and her co-claimants brought pay claims against Sodexho seeking to compare their pay with that of male maintenance assistants who did not transfer. The EAT held that under the Equal Pay Act 1970, Ms Gutridge and her co-claimants had an implied contractual right to be paid at the same rate as their comparators. This “equality clause” bites the moment the conditions of its application are met. Where this takes place before the transfer, the contractual right derived from the equality clause transfers to the transferee. Ms Gutridge and her co-claimants could therefore enforce against Sodexho their right to the terms that would have been enforceable before the transfer against the Trust. Thus, their claims were allowed to proceed. Employers taking on employees after a TUPE transfer will need to protect themselves from exposure to similar liabilities through appropriately drafted indemnities.