Source: XpertHR P&D Date: 19/12/2004 Publisher: XpertHR

Sickness and sick pay: Contract clause on recovery of payments made during sickness absence if employee is compensated by third party (contract clause)

TOPICS:
pay and benefits premiums and allowances
terms, conditions and employee rights working time and leave
contracts of employment terms of employment

AUTHOR: David Smellie and Lynda Macdonald


Clause wording: All non-statutory payments paid to the employee during absence due to sickness or injury will be treated as a loan by the Employer if compensation is subsequently recovered by the employee from a third party (including private insurance). It is a condition of the Employer's contractual sick pay scheme that any payments made under the scheme are repaid to the Employer in full if compensation is recovered from a third party.

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