Two months to equalise: The Czech Supreme Court's approach to wage harmonisation in TUPE transfers

The article addresses a significant judgment by the Czech Supreme Court in the area of Transfer of Undertaking (TUPE). In this ruling, the Supreme Court rejected the Transfer of Undertaking as a justifiable reason for differential wage treatment. Based on the decision, transferees have a two-month period following the transfer to harmonise employment terms for all employees to prevent unequal treatment. The only exception applies to transfers of rights and obligations arising from collective bargaining agreements. Case note: Czech Supreme Court Case No. 21 Cdo 2559/2023 dated 29 August 2024