Unauthorised deductions from pay
This case is a good example of how the terms of a staff handbook that is stated to be non-contractual can still be incorporated into an employee's contract of employment.
An industrial tribunal in Northern Ireland has awarded a managing director almost £149,000, which included an unusually large award for unlawful deductions from wages of £112,000.
This case concerned a common dispute at employment tribunals: whether or not a discretionary payment had become a contractual entitlement.
In HM Revenue and Customs v Stringer and others sub nom Commissioners of Inland Revenue v Ainsworth and others [2009] IRLR 677 HL, the House of Lords held that a claim for unpaid holiday due under the Working Time Regulations 1998 can be brought as an unlawful deductions from wages claim under ss.13 and 23 of the Employment Rights Act 1996.
In Small and others v Boots Co and another [2009] All ER (D) 200 (Jan) EAT, the EAT held that the fact that the employer had stated that a bonus was discretionary did not necessarily mean that it had no contractual effect. The employer's discretion could relate to: whether or not to operate a bonus system at all; whether or not to award a bonus in a given year; or the amount of bonus to be awarded.
The Employment Appeal Tribunal has held that an employment tribunal did not have jurisdiction to hear claims against British Airways for non-payment of flying allowances to cabin crew who had not been able to fly because of an airport closure.
This article looks at some of the important judgments in the area of the transfer of undertakings over the past year.
The High Court has held that an employer could deduct only 1/260th of salary from employees' pay in respect of a one-day strike, and not 1/228th, which discounted paid holiday.
This week's case of the week, provided by Addleshaw Goddard, covers unlawful deductions from wages.
In Coors Brewers Ltd v Adcock [2007] EWCA Civ 19 CA, the Court of Appeal has held that employment tribunals do not have jurisdiction to hear claims for unlawful deductions from wages where a detailed investigation to identify the level of underpayment is required.
Employment law cases: HR and legal information and guidance relating to unauthorised deductions from pay.