Refusal to transfer

Case 2: The facts

Mr Hope worked as a machinist in a small machine shop, PGS. PGS told him that his employment would be transferred to a new company, GMS, but that he could have a month's trial with them and would receive a redundancy payment if he objected to the transfer.

GMS offered Hope a new contract, but it contained provisions for shift work and an opt-out of the 48-hour week, which were not a part of his existing contract. Hope therefore objected to the transfer because it was on less favourable terms. PGS dismissed him because he refused to transfer, but did not pay him redundancy money.

The ruling

Hope argued on appeal that the new terms were a detrimental change to his working conditions, and that his refusal to accept them amounted to a constructive dismissal. Unfortunately he had not put this claim to the employment tribunal, meaning that the Employment Appeal Tribunal (EAT) could not consider it.

However, the EAT found that Hope's dismissal by PGS was automatically unfair under the TUPE regulations because it was by reason of the transfer. He was therefore entitled to compensation for unfair dismissal from PGS.

Hope v PGS Engineering UKEAT/0267/04