Visteon Engineering Services Ltd v Oliphant & Ors - Say what you intended in collective agreements [2013] EAT

Contractual interpretation: a Mirrored Terms Agreement (MTA) was incorporated into the contracts of employee claimants on the TUPE transfer of their employment from the Ford Motor Co. Ltd. (‘Ford’) to Visteon Ltd.

The MTA entitled transferring employees to the terms and conditions negotiated for Ford employees. Despite a claim that these terms ceased to have effect either on the expiry of a fixed period of six years or consequent upon a new collective agreement being made affecting the transferred employees, the tribunal found that the MTA was of indefinite duration with the effect that the employees were entitled to the same pay increases in 2008 and 2009 as were given to Ford employees in the same occupational groups. Mr Oliphant’s claim for deduction from wages, the increase in pay in 2008 and 2009 that the Ford employees enjoyed, was therefore successful.

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