Sarah Collins of Addleshaw Goddard brings you a comprehensive update on the latest decisions that could affect your organisation and advice on what to do about them.
In Farrell Matthews & Weir v Hansen, the EAT holds that a non-contractual bonus that had been declared constituted wages under s.27(3) of the Employment Rights Act 1996. The employer's failure to pay it therefore amounted to an unlawful deduction from wages.
A model contract clause on commission and discount rebates for sales people.
A model contract clause on payment of commission.
In Coutts & Co plc v Cure; Royal Bank of Scotland v Fraser, the EAT holds that, in a case where an employer refused to pay a non-contractual bonus to all non-permanent employees, including some fixed-term workers, the tribunal did not err in law by holding that the reason for the less favourable treatment was on the ground of the employees' status as fixed-term workers.
This week's case round-up from Eversheds, covering: incorporated contract terms; and calculating statutory maternity pay.
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 Commerzbank AG v Price, the Court of Appeal holds that a High Court judge erred in his construction of employment documents which, properly construed, guaranteed the employee only one bonus payment for the year in question, and not the two that he had in fact been paid.
HR and legal information and guidance relating to employee incentives.