One-off Direct Pay Offer Was Not Attempt to Bypass Collective Bargaining (UK)

    View Authors June 2019

    In Kostal UK Ltd v Dunkley & ors, the Court of Appeal has held that an employer can make a one-off pay offer direct to employees without breaching s145B of the Trade Union and Labour Relations (Consolidation) Act 1992, which prohibits employers from inducing workers to opt out of collective bargaining. This decision offers reassurance to employers with unionised workforces that, in certain circumstances, they can seek to agree pay terms directly with their employees without the risk of penalties, provided they remain committed to collective bargaining going forward.