In a team setting, there is always the risk of a merge conflict. Without a conflicht, the Team plug-in automatically merges changes upon update. But if a conflict occurs, the user has to intervene. While the commit will still be triggered, the user will receive a message that committing is not possible, unless the conflict is resolved.
The conflicting file is marked in the project view with a red icon. Upon double clicking, the Team plug-in asks whether the conflict resolution process should be started now: