In a case decided under the 2006 TUPE Regulations, the Court of Appeal in Hazel v The Manchester College have upheld a tribunal’s decision that two employees were automatically unfairly dismissed.

There was a TUPE transfer and the two employees were dismissed for failing to agree to new terms which included a pay cut. Whilst the College could rely on the reason for dismissal as a economic, technical or organisational (ETO) reason, it was found that this did not entail changes in the workforce so did not save them.

The Court of Appeal went on to also uphold the Tribunal’s decision with regards to remedy. The Tribunal has ordered re-engagement of the employees at their old rate of pay but with a pay freeze so that they would not receive pay rises until the remainder of their colleagues who had agreed to the new terms had a chance for their pay to catch up.