Payments on termination

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  • Equal pay: Severance payment based on final salary not discriminatory

    Date:
    15 September 1999
    Type:
    Law reports

    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.

  • Breach of contract: Employer was liable to make payment in lieu of notice without deduction for mitigation

    Date:
    15 September 1999
    Type:
    Law reports

    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.

  • Fixed-term contracts: Redundancy waiver in fixed-term contract which succeeded open-ended contract was effective

    Date:
    15 July 1999
    Type:
    Law reports

    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.

  • Tax on termination: Contractual pay in lieu of notice liable to income tax

    Date:
    15 October 1998
    Type:
    Law reports

    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.

  • Contracts of employment: No right to pay in lieu of notice after frustration

    Date:
    1 September 1998
    Type:
    Law reports

    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.

  • Wrongful dismissal: No entitlement to damages for loss of right to claim unfair dismissal

    Date:
    15 April 1998
    Type:
    Law reports

    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.

  • Equal pay: Calculation of part-timer's severance payment objectively justified

    Date:
    1 March 1998
    Type:
    Law reports

    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.

  • Insolvency: Notice pay on insolvency reduced by mitigation

    Date:
    1 January 1996
    Type:
    Law reports

    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.

  • Contracts of employment: Contractual entitlement to payment in lieu of notice

    Date:
    1 September 1995
    Type:
    Law reports

    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.

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

    Date:
    1 July 1995
    Type:
    Law 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.