Collective agreements

Case 5: The facts

Hans Werhof’s employment was transferred under TUPE. Prior to the transfer, his terms and conditions had been governed by a collective agreement negotiated between his union and the employers’ federation for the German metalworking industry; however, his new employer was not a member of that federation.

Some time later, the federation and the union negotiated a new collective agreement, which provided for additional payments. Werhof argued that he was entitled to these payments on the grounds that the collective agreement should have transferred alongside his employment terms and conditions.

The ruling

The ECJ held that an employee is entitled to only the rights and obligations that are in force on the day of the transfer. That means that s/he retains any entitlements given by a collective agreement, but is not entitled to benefit from a new agreement negotiated after s/he transfers. Werhof’s claim for the additional payments therefore failed.

Werhof v Freeway Traffic Systems Gmbh & Co KG C-499/04 ([2006] IRLR 400)