Calculating severance payments by reference to length of service and final pay, so that a part-time employee who had previously worked full time did not have her full-time service reflected in her severance payment, was not discriminatory, holds the House of Lords in Barry v Midland Bank plc.
A provision of a contract of employment, which entitled the employer to terminate the contract either by giving the employee notice or summarily on paying him in lieu of notice, did not give the employer a third option of giving no notice and making no, or less than full, payment, holds the EAT in Cerberus Software Ltd v Rowley.
An employee's waiver of his right to a redundancy payment on the expiry of a two-year fixed-term contract he entered into immediately following a long period of open-ended employment with the same employer was effective in depriving him of entitlement to such a payment, notwithstanding the rights he had accrued under his original, ordinary contract, holds the EAT in Kingston upon Hull City Council v Mountain.
In EMI Group Electronics Ltd v Coldicott (HM Inspector of Taxes), the High Court rules that a payment in lieu of notice paid under an express contractual provision is an emolument "from" the employment, and therefore liable to income tax in full under Schedule E.
An employee's contract was frustrated when injury made him unable to work again for his employer and, as the contract ended by operation of law rather than by the employer's termination, the employee was not entitled to payment in lieu of notice, holds the EAT in G F Sharp & Co Ltd v McMillan.
A wrongfully dismissed employee could not claim damages for loss of the right to claim compensation for unfair dismissal, which he would have acquired had he been given due notice, where the employer had a right under the contract of employment to make a payment in lieu of notice, holds the Court of Session in Morran v Glasgow Council of Tenants Associations and others.
Calculating severance payments by reference to final pay, so that a part-timer who had previously worked full time did not have her full-time service reflected in her severance payment, was not proven to have a disproportionately adverse effect on women as compared with men but, if there was indirect discrimination, it was objectively justified, holds the Court of Appeal in Barry v Midland Bank plc.
In Secretary of State for Employment v Thompson, an employee whose employment ended without notice on his employer's insolvency was entitled to notice pay from the national insurance fund, but was under a duty to mitigate his loss.
In Abrahams v The Performing Right Society Ltd, it is held that there is no duty to mitigate where an employment contract provides for termination on payment of a sum in lieu of notice.
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.
HR and legal information and guidance relating to payments on termination.