CSC Computer Sciences Ltd v McAlinden & Ors [2013] EWCA Civ 1435 (13 November 2013)

CSC Computer Sciences Ltd v McAlinden & Ors [2013] EWCA Civ 1435 (13 November 2013)

The Court held that CSC's consistent practice of awarding RPI increases to ex-ITS employees, combined with communications to employees and internal documents acknowledging a legal obligation, led to the crystallisation of an implied contractual term entitling the claimants to annual RPI increases. The fact that CSC may have acted on a mistaken belief about the existence of such a right pre-transfer was irrelevant; what mattered was the objective effect of CSC's conduct and communications, which conveyed to employees that the right existed.

Citation
[2013] EWCA Civ 1435
Parties
Appellant: CSC Computer Sciences Limited; Respondents: McAlinden and Others
Jurisdiction
England and Wales
Judgment Date
13 November 2013
Procedural Posture
Employment Appeal / Appeal From Employment Appeal Tribunal to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Implied Contractual Terms, Custom and Practice, Unlawful Deduction From Wages, Transfer of Undertakings (tupe)
Employment Law Implied Contractual Terms Custom and Practice Unlawful Deduction From Wages Transfer of Undertakings (tupe)

Case Brief

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Parties

CSC Computer Sciences Limited

Appellant

McAlinden and Others

Respondents

Procedural Posture

Employment Appeal / Appeal From Employment Appeal Tribunal to Court of Appeal

Legal Issues

  1. 1 Whether an implied contractual term existed entitling ex-ITS employees to annual RPI pay increases based on custom and practice and/or conduct of the parties
  2. 2 Whether the employer's communications and conduct created a contractual obligation to pay RPI increases

Ratio Decidendi

The Court held that CSC's consistent practice of awarding RPI increases to ex-ITS employees, combined with communications to employees and internal documents acknowledging a legal obligation, led to the crystallisation of an implied contractual term entitling the claimants to annual RPI increases. The fact that CSC may have acted on a mistaken belief about the existence of such a right pre-transfer was irrelevant; what mattered was the objective effect of CSC's conduct and communications, which conveyed to employees that the right existed.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed. The Employment Tribunal's decision that the claimants were entitled to the RPI increase from 1 April 2010 as a matter of contract stands. The claims will be listed for a remedy hearing and to decide whether the claimants should have leave to amend their claims regarding the 2008 pay round.