In Adin v Sedco Forex International Resources Ltd [1997] IRLR 280 CS, the Court of Session held that if an employer provides sickness benefits it will be a breach of contract to dismiss an employee on grounds of ill health while he or she has sickness benefit outstanding.
In Rutherford v Radio Rentals Ltd, the Court of Session holds that to give effect to an employer's contractual obligation to provide personal accident insurance for its employees, it may be necessary to imply a further term that the employer must make a payment to any employee who qualifies under the terms of the insurance policy referred to in the contract. The employer cannot discharge its obligations merely by relying on a refusal by the insurance company to honour the policy.