Transferee´s Ongoing Liability For Transferor´s Equal Pay Breach

The decision of the Employment Appeal Tribunal in the case of Sodexo Ltd v Gutridge and others demonstrates that when involved in a transaction involving a TUPE transfer of staff, it will be important to consider the risk of equal pay claims, particularly as they may not be immediately apparent.

This case concerned female cleaners at Hartlepool General Hospital, who were employed by North Tees and Hartlepool NHS Trust and who were transferred to Sodexo on 1^st July 2001. Some 5 years after the transfer, Mrs Gutridge and others brought equal pay claims, seeking to compare themselves with male maintenance assistants who had not transferred.

The Claimants argued that they were entitled to bring a claim against Sodexo by virtue of the equality clause that is implied into every contract of employment by the Equal Pay Act 1970 (such that no one is treated less favourably on account of his or her sex with regard to terms and conditions of employment). They claimed that