Pay and benefits
The European Court of Justice has considered whether or not "normal remuneration" during a period of annual leave should include allowances on top of basic pay, in the context of a dispute over how the holiday pay of British Airways pilots who are paid flying allowances as well as basic pay should be calculated.
Claire Benson is managing associate and Caroline Jacobs and Chris McAvoy are associates at Addleshaw Goddard LLP. They round up the latest rulings.
The Employment Appeal Tribunal has considered the circumstances in which the terms and conditions of employees derive from the "same source" as their comparators for the purposes of the Equal Pay Act 1970.
This case is a good example of how the terms of a staff handbook that is stated to be non-contractual can still be incorporated into an employee's contract of employment.
An industrial tribunal in Northern Ireland has awarded a managing director almost £149,000, which included an unusually large award for unlawful deductions from wages of £112,000.
The Employment Appeal Tribunal has held that, on its true construction, a company's long-term disability scheme applied to employees who were permanently incapable of employment in any capacity, rather than merely incapable of working for the company.
Tori O'Neil, associate, and Judith Harris, legal director, at Addleshaw Goddard detail the latest rulings.
This case concerned a common dispute at employment tribunals: whether or not a discretionary payment had become a contractual entitlement.
This week's case of the week, provided by DLA Piper, covers VAT on employee benefits.
In Parkwood Leisure Ltd v Alemo-Herron and others [2010] EWCA Civ 24 CA, the Court of Appeal held that, where the transfer of an undertaking occurs, and the transferring employees' contracts contain a clause referring to a collective agreement between the transferor and the relevant union, the transferee is not obliged to recognise wage increases agreed by the transferor and the union after the transfer has occurred resulting from negotiations to which the transferee was not a party.
Employment law cases: HR and legal information and guidance relating to pay and benefits.
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