Pay and benefits
In Peninsula Business Services Ltd v Sweeney the EAT holds that a sales executive's contract of employment incorporated the rules governing the employer's commission scheme, which specified that no payments of commission would be made if the employee was no longer in the employment at the date the commission would have been payable. Those rules were clearly set out in a written document that was specifically referred to as forming part of the contract, and which had been signed by the employee.
In Martin and others v South Bank University [2004] IRLR 74 ECJ, the European Court of Justice held that early retirement benefits should be paid for by a new employer after a transfer of undertakings.
In Hepworth Heating Ltd v Akers and others [2003] All ER (D) 33 (Jul) EAT, the Employment Appeal Tribunal held that the employer had not used an unlawful act to compel acceptance of a cashless pay system. The employees might have been unhappy with the new terms, but there had been no duress.
In Ibekwe v London General Transport Services Ltd, the Court of Appeal holds that an employee's claim for damages for loss, resulting from his employer's alleged failure to inform him of his option to transfer accrued pension benefits to a new pension scheme, could not succeed.
In Pioneer Technology (UK) Ltd v Jowitt, the Court of Appeal holds that a contractual clause that, independently of the employer's insurance policy, provided for long-term disability payments to be made to employees no longer able to work due to illness or injury, amounted to a freestanding obligation on the employer to provide such payments to a qualifying employee in circumstances where cover was excluded by the insurance policy.
In Evans v Malley Organisation Ltd t/a First Business Support the Court of Appeal holds that an employee who was paid a basic salary, plus commission which depended on contracts he won for his employer, was entitled, on termination of his employment, to accrued statutory holiday pay calculated by reference to his basic pay alone, and not his average pay including commission.
In Scottbridge Construction Ltd v Wright the Court of Session upholds the EAT's decision that a "nightwatchman" who was required to be on his employer's premises for 14 hours each night was entitled to be paid the national minimum wage in respect of all those hours, even though, while required to respond to an alarm at any time, he only had to undertake specific tasks that took around four hours a night, and was permitted to sleep if he chose to when not carrying out those tasks.
In Marlow v East Thames Housing Group Ltd, the High Court holds that where an employee is contractually entitled to benefits paid by insurers under a permanent health insurance policy with the employer, the employer is bound to take all reasonable steps to secure those benefits from the insurers. This could, depending on the circumstances, entail pursuing litigation against the insurers.
In Walton v Airtours plc and another, the Court of Appeal holds that an airline pilot who was unable to continue with his job after becoming ill with chronic fatigue syndrome, but was fit to undertake light part-time work with rehabilitation and a programme of support, remained entitled to benefits under the employer's PHI scheme, notwithstanding that those benefits were payable in the long term only if the employee was unable to "follow any occupation".
In Soteriou v Ultrachem, Solvo Ltd and Ultracolour Ltd, the EAT upholds an employment tribunal's decision that an employee's knowing and active participation in the deception of the tax authorities as to his employment status was primarily for his own benefit.
Employment law cases: HR and legal information and guidance relating to pay and benefits.