easyJet PLC v easyJet European Works Council
[2022] EAT 162
HSBC European Works Council v HSBC Continental Europe
4 July 2024
[2024] EAT 104
Employment Appeal Tribunal
After Brexit, HSBC moved its European Works Council's management from the UK to Ireland to comply with EU rules. The workers' council sued, arguing HSBC broke their contract. The court ruled that the contract allowed for these changes because it already dealt with changes within Europe and HSBC had to follow EU law. The court said that the change to a new location didn't break the contract.
Key Facts
- •HSBC and its European Works Council (EWC) had an agreement (the Agreement) where UK-based central management meant UK law applied.
- •Post-Brexit, HSBC argued the UK could no longer be central management under EU Directive 2009/38/EC.
- •HSBC designated Ireland as its representative agent, leading to changes in the Agreement (Amended Agreement) including Irish law application.
- •The EWC challenged these changes before the Central Arbitration Committee (CAC), which ruled against the EWC.
- •The EWC appealed to the Employment Appeal Tribunal (EAT).
Legal Principles
Autonomy of parties to agree terms of EWC agreements, with deference given to voluntary agreements.
EU Council Directive 2009/38/EC, Article 6; Regulation 17 of TICER
Interpretation of contracts involves identifying parties' intentions based on the language used in its documentary, factual, and commercial context.
Arnold v Britton (Supreme Court)
Pre-existing EWC agreements continue to exist after Brexit; the amendment of Regulation 5 did not remove existing EWCs from the ambit of TICER.
EasyJet plc v EasyJet European Works Council [2023] EWCA Civ 756
Restrictions on contracting out; any provision in an agreement that purports to exclude or limit the operation of any provision of these Regulations is void.
Regulation 40 of TICER
Outcomes
EAT dismissed the EWC's appeals.
The CAC correctly interpreted the Agreement. The changes made by HSBC were a necessary consequence of Brexit and the requirement to designate a representative agent in an EEA Member State. The Agreement's terms allowed for automatic changes to the scope based on changes in EEA membership.