Jurisdiction(s):
United Kingdom

Supreme Court: unions can enforce employment contract check‑off under the Contracts (Rights of Third Parties) Act 1999; strong presumption of third‑party enforceability unless expressly or impliedly excluded

Published on: 21 November 2024

Published by a LexisNexis Dispute Resolution expert

Legal News

Article summary

Background to the appeal

The question on this appeal concerns when a trade union may litigate, as a third party, for breach of an employment contract between employer and worker. Sections 1(1)(b) and 1(3) of the Contracts (Rights of Third Parties) Act 1999 (C(RTP)A 1999) create a default rule: where a contractual term grants a benefit to a third party who is expressly identified in the instrument, that third party can enforce the term in its own name. It applies only where the beneficiary is expressly identified within the contract and thereby conferred a benefit. The appeal turns on the proper reading of section 1(2) C(RTP)A 1999, which states that the default position is displaced if, construing the contract correctly, it appears the parties did not intend the term to be actionable by the third party. The respondents are three government departments. Some of their staff, including the individual claimants here, belong to the Public and Commercial Services Union (the Union). The Union is recognised by the respondent departments for the purposes of collective bargaining. The individual...

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