Labour & European Law Review
28 June 2012
In an important ruling, the Court of Justice of the European Union (CJEU) said last week that the right to paid annual leave cannot be interpreted restrictively.
Regulation 10 of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) states that pensions are excluded from the remit of the legislation. In The Proctor & Gamble Company v SCA Hygiene Products, the High Court said, however, that following several European decisions, discretionary early retirement benefits were transferrable.
Employers are contractually bound to make a payment in lieu of notice if there is a term in the employee’s contract to that effect, but what if the employer later discovers that the employee had committed an act of gross misconduct before they were dismissed? The Court of Appeal said in Cavenagh v William Evans Ltd that they still have to pay up if they have lawfully dismissed the employee.