Pay and benefits
In Discount Tobacco & Confectionery Ltd v Williamson [1993] IRLR 327 EAT, the EAT upheld an employment tribunal's decision that in order for a deduction to be lawful, it is not sufficient that the employee gives written consent before the deduction is made. The employee's written agreement must have been given before the conduct or event giving rise to the deduction.
In Pepper (HM Inspector of Taxes) v Hart and others [1993] IRLR 33 HL, the House of Lords held that in-house benefits, and particularly concessionary school fees for teachers' children, should be assessed for tax on the basis of the additional or marginal cost to the employer of providing the benefit.
In Fairfield Ltd v Skinner [1993] IRLR 4 EAT, the EAT held that there must be justification for making a deduction from wages, even when authority has been given in the contract.
An agreement under which an employee was liable to repay a proportion of a training course fee to his employer if his employment terminated within a certain period did not specifically authorise repayment by way of a deduction from wages, holds the EAT in Potter v Hunt Contracts Ltd.
In some circumstances, an employer is under an implied obligation to notify its employees of any rights which they have under their contracts of employment which are dependent upon them taking some sort of action, rules the House of Lords in Scally and others v Southern Health and Social Services Board and others.
An employer's right to require overtime from an employee who is under a contractual obligation to be "on call" for a specified number of hours in excess of his basic working week, is subject to the employer's implied duty to take reasonable care not to injure its employee's health, holds the Court of Appeal in Johnstone v Bloomsbury Health Authority.
In Rutherford v Radio Rentals Ltd, the Court of Session holds that to give effect to an employer's contractual obligation to provide personal accident insurance for its employees, it may be necessary to imply a further term that the employer must make a payment to any employee who qualifies under the terms of the insurance policy referred to in the contract. The employer cannot discharge its obligations merely by relying on a refusal by the insurance company to honour the policy.
In Glynn v Commissioner of Inland Revenue [1990] 2 WLR 633, the Judicial Committee of the Privy Council found that school fees paid on behalf of an employee were a taxable benefit.
The European Court of Justice holds that occupational pensions payable under a contracted-out scheme constitute "pay" under Article 119 of the Treaty of Rome, and so must be offered to men and women on equal terms.
In Bilka-Kaufhaus GmbH v Weber von Hartz [1986] IRLR 317 ECJ, the European Court of Justice held that the exclusion of part-time workers from occupational pension schemes contravenes Article 119 of the Treaty of Rome if this exclusion affects significantly more women than men, unless the employer can show that the exclusion is based on objectively justified factors unrelated to any discrimination on grounds of sex.
Employment law cases: HR and legal information and guidance relating to pay and benefits.