Clarity has long been awaited regarding the transfer of equal pay rights in a TUPE situation. The Court of Appeal has found that:

  • Any losses which accumulated prior to the transfermust be brought against the transferor within sixmonths of the transfer date. A failure to bring a claim within this time limit will lead to the claim being barred; but
  • Any losses which accrue after the transfer date mustbe brought against the transferee. Claims against the transferee must be brought within six months of the termination of employment with the transferee;
  • Employees can claim up to six years losses from the date of the claim.

This is important information for employers who take over public sector contracts. Liability for post-transfer equal pay losses will rest with the transferee and the appropriate comparator may well be those employed by the public authority before the transfer.

 Gutridge v Sodexho