Labour & European Law Review
09 June 2011
Changes to the European Works Council directive, which requires multi-national organisations to inform and consult their European workforce on transnational issues, came into force on 5 June.
The Transnational Information and Consultation of Employees (Amendment) Regulations 2010 (SI 2010/1088) implement the changes in the UK required by the recast directive 2009/38/EC.
An employment contract can be terminated with immediate effect by a clause allowing the employer to make a payment in lieu of notice (PILON). In Societe Generale London Branch v Geys, the Court of Appeal said that a contract can (when clearly drafted) be terminated by a PILON even if the employee was not aware that a payment had been made into his account.
Under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), a dismissal is automatically unfair if it has something to do with the transfer, unless certain exceptions apply. In Spaceright Europe Ltd v Baillavoine the Employment Appeal Tribunal (EAT) said that the dismissal could be for a reason connected with the transfer even though no prospective transferee had been identified at the time of the dismissal.