Pay and benefits
This week's case of the week, provided by Addleshaw Goddard, covers unlawful deductions from wages.
This week's case of the week, provided by Addleshaw Goddard, covers discretionary bonuses.
In 1) Bainbridge & Ors 2) Redcar & Cleveland Borough Council v 1) Redcar & Cleveland Borough Council 2) Williams EAT/0424/06 & EAT/0031/07 the Employment Appeal Tribunal held that successful equal pay claims confer the right to up to six years' back pay prior to the institution of proceedings.
Where an employee is experiencing stress related to excessive workloads, the presence of a workplace counselling service will not automatically serve to discharge the employer's duty of care in stress claims.
In Commerzbank AG v Keen [2007] IRLR 132 CA the Court of Appeal held that an employer did not act in breach of the implied terms of a contract of employment in awarding to a highly paid employee lower bonuses than those recommended by his manager. Further, the terms of employment contracts are not covered by the provisions of the Unfair Contract Terms Act 1977.
In James v Redcats (Brands) Ltd [2007] IRLR 296 EAT, the Employment Appeal Tribunal (EAT) has given guidance on the definition of a worker under the national minimum wage legislation.
This article looks at some of the significant judgments in the area of equal pay over the past year and their implications.
In Leisure Employment Services Ltd v Commissioners for Her Majesty's Revenue and Customs [2007] IRLR 450 CA, the Court of Appeal has held that sums deducted from the pay of workers living in employer-provided accommodation to offset the cost of utility bills can not be counted as part of their wages for the purposes of establishing if they are receiving the minimum wage.
In May Gurney Ltd v Adshead and others EAT/0150/06 the Employment Appeal Tribunal holds that the remuneration of employees entitled to a perfomance bonus "does vary with the amount of work done". Accordingly the amount of a week's pay for the purpose of calculating holiday pay will be determined by taking the employees' average pay over the 12 weeks preceding their holiday.
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 pay and benefits.