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Compromise agreements: Compromise agreement fails to prevent equal pay claim

This report relates to 1 case(s)

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    Hilton UK Hotels Ltd v McNaughton EAT/0059/04 (2 other reports)

    • Case round-up: Compromise agreements

      6 December 2005

      This week's case round-up from Eversheds, covering compromise agreements.

    • Hilton UK Hotels Ltd v McNaughton

      28 November 2005

      In Hilton UK Hotels Ltd v McNaughton EAT/0059/04, the Employment Appeal Tribunal held that, where a compromise agreement included the qualification that settled claims would extend only to those that the employee 'believed' that she had at the date of her signature on the agreement, this did not preclude a future claim of which she was unaware at this time.

Key points

In Hilton UK Hotels Ltd v McNaughton EATS/0059/04, the EAT holds:

  • The employment tribunal was correct to find that a compromise agreement did not prevent an employee who was excluded from the employer's pension scheme during a period of part-time employment from advancing an equal pay claim. As a matter of construction, the waiver clause contained in the agreement she had signed on termination of her employment did not suffice.