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Contracts of employment: Employee accepted new benefits in substitution for old

This report relates to 1 case(s)

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    Rae v Blackrock International Ltd 15 December 2000 CS (0 other reports)

In Rae v Blackrock International Ltd 15.12.00, the Outer House of the Court of Session holds that an employee who accepted his employer's offer of participation in a new incentive scheme, in the knowledge that the benefits under that scheme were being offered in substitution for benefits to which he was contractually entitled under a previous arrangement, could not claim that he had a continuing entitlement under that previous arrangement in addition to his rights under the new scheme. Although the substitutional nature of the new scheme was not spelt out to the employee when the offer of participation was made, the employer's position had previously been made clear at staff meetings and, in all the circumstances, the employer was entitled to conclude that the employee accepted the new arrangement in substitution for his original rights.