Glendale Managed Services v Graham & Ors

Glendale Managed Services v Graham & Ors

The employer was contractually obliged to pay NJC-agreed pay increases as the norm, unless and until notice was given to employees of a decision to depart from that norm; formal adoption of each pay rise was not a pre-condition, and the contract must be interpreted in light of the parties' conduct and the implied term of mutual trust and confidence.

Parties
Appellant: Glendale Managed Services; Respondents: Mr D Graham & Others
Jurisdiction
England and Wales
Judgment Date
16 May 2003
Procedural Posture
Employment Appeal / Appeal From Employment Appeal Tribunal to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Contract Interpretation, Unlawful Deduction of Wages, Collective Agreements, Implied Terms in Employment Contracts
Employment Law Contract Interpretation Unlawful Deduction of Wages Collective Agreements Implied Terms in Employment Contracts

Case Brief

Summary, issues, holding and outcome

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Parties

Glendale Managed Services

Appellant

Mr D Graham & Others

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the employer was contractually obliged to pay NJC-agreed pay increases to employees after a transfer of undertaking
  2. 2 Whether the phrase 'normally in accordance with the NJC as adopted by the Authority from time to time' required formal adoption of each pay rise
  3. 3 Whether notice was required before departing from NJC rates

Ratio Decidendi

The employer was contractually obliged to pay NJC-agreed pay increases as the norm, unless and until notice was given to employees of a decision to depart from that norm; formal adoption of each pay rise was not a pre-condition, and the contract must be interpreted in light of the parties' conduct and the implied term of mutual trust and confidence.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed; the respondents are entitled to the NJC pay increases for April 2000 and April 2001.