Supreme Court determines that there is no fixed time frame for salary harmonisation post-TUPE transfers

At a glance

• Following TUPE transfers, employers need to consider the obligation to harmonise salaries and eliminate pay gaps. However, the time frame in which pay gaps must be closed remains uncertain.
• In a recent Supreme Court ruling, it was determined that a general maximum time, for example two or five years, cannot be established.
• Instead, a reasonable time frame can be considered. This will depend on the overall circumstances and the employer’s actual ability to harmonise the salaries.
• It is also important for an employer to set a believable and realistic plan for harmonising the salaries – and naturally to implement the plan.