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Equal pay: Article 119 covers notice pay on employer's insolvency

This report relates to 1 case(s)

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    Clark v Secretary of State for Employment [1995] IRLR 421 EAT (0 other reports)

The EAT holds in Clark v Secretary of State for Employment that pay in lieu of notice is "pay" within the meaning of Article 119, even if the payment is made by the Secretary of State for Employment out of the National Insurance Fund where the employer is insolvent. It followed that the EP(C)A was in breach of Article 119 - before the relevant provisions were amended last year - by excluding employees who were absent because of pregnancy from the right to payment during their statutory notice period. The claimant, whose employment terminated when her employer became insolvent while she was on maternity leave, was therefore entitled to receive from the Secretary of State a sum equal to the pay in lieu she would have received from her employer on dismissal.