NetJets Management Ltd v Central Arbitration Committee and Skyshare 2012 EWHC 2685
The CAC in this case decided there were no territorial restrictions preventing Skyshare's application for recognition for collective bargaining in respect of pilots employed by NetJets across Europe despite the majority of the pilots living abroad and the High Court agreed.
The private airline however, objected and applied for a judicial review. Although the pilots' contracts were governed by English law, they paid National Insurance contributions and NetJets was registered in Great Britain, the pilots' instructions were actually issued by the Lisbon-based company which owned the airplanes and 616 of the 779 pilots lived in countries other than the UK. Nevertheless, the High Court decided that applying the test set out by the Supreme Court in Ravat (see Bulletin 54 – June 2012) the connection with Great Britain was sufficiently strong for the Union to be able to seek recognition to conduct collective bargaining on their behalf. The fact that the administration of the employment relationship took place in Portugal could not properly lead to the conclusion that a stronger connection existed with Portugal.
Key point: There are no territorial limitations on the jurisdiction of the Central Arbitration Committee under the Trade Union and Labour Relations (Consolidation) Act 1992 in respect of overseas-based employees of companies incorporated inside Great Britain.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
