Supreme Court determines that mistakes in collective agreements incorporated into employment contracts can be rectified (Unite the Union and another v Tyne and Wear Passenger Transport Executive T/A Nexus)

Table of contents

• Background to the appeal
• Judgment
• Reasons for the judgment
• Comments

Article summary

On 13 November 2024, the Supreme Court handed down its decision in Unite the Union and another v Tyne and Wear Passenger Transport Executive T/A Nexus. In a unanimous decision delivered by Lord Leggatt and Lady Simler in a joint judgment, the Supreme Court agreed with the Court of Appeal decision and dismissed the appeal from Nexus seeking rectification of a legally unenforceable collective agreement in relation to pay. However, unlike the Court of Appeal, which held that collective agreements cannot be rectified as they are legally unenforceable, the Supreme Court recognised that such agreements incorporated into employment contracts can be rectified as doing so would affect legal rights or obligations between employees and employers. While this was the position in this case, and rectification would have indirectly affected the employer and relevant employees, the claim for rectification from an employer needs to...