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Mergers 'can bring pay disputes'

14 Aug 2008

Mergers 'can bring pay disputes' Students working part-time to support their studies could be interested to hear that organisations recruiting after a merger could face up to six years worth of unequal pay claims, according to one expert.

City law firm Trowers & Hamlins claims a ruling by the Employment Appeal Tribunal means employers are liable for unfair wage practices of former employers under the Transfer of Undertakings Regulations (TUPE), it has been reported by Personneltoday.com.

Employment lawyer Emma Burrows, who is a partner in the company, told the website the new ruling has "significant" implications for the growing number of companies looking to merge or share resources to operate more effectively and improve profits.

"Taking on employees under TUPE could leave organisations liable for unwittingly continuing unequal pay practices perpetrated by the original employer."

She warned the ruling could also mean staff can force their right to equal pay against their organisation using old staff to compare wages with.

Meanwhile, in other news Halifax has found an increasing amount of students are working part-time in order to support their studies.

New research found almost half (48 per cent) of those in higher education are working part-time in order to supplement their income.

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