Posted by Gemma Ospedale, Partner
On 1 September 2016 Withy King LLP merged with Royds LLP. The trading name for the merged firm is Royds Withy King. All content produced prior to this date will remain in the name of the firms pre-merger.
One off payment to staff unlawful
In a first instance decision, Bugden and others v London Borough of Bromley the Tribunal held that a local authority which made a one-off payment to its staff to induce them to agree to a local pay review mechanism and forgo collective bargaining did so unlawfully. The purpose of the offer was clearly to induce the employees to agree to move from collective negotiation for annual pay awards on a national and regional level to a system where pay increases were set by the council. Each of the 18 Claimants was awarded £3,600 in compensation.
This case reinforces the fact that attempting to buy out employees’ rights under trade union recognition and collective agreements is unlawful.
This legal update is provided for general information purposes only and should not be applied to specific circumstances without prior consultation with us.
For further details on any of the issues covered in this update please contact Gemma Ospedale, Partner in Employment on 020 7583 2222.
It pays to employ the right employment solicitor