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Employment Law News

Employment Appeal Tribunal holds that pay progression clause did not allow automatic pay increments

The Employment Appeal Tribunal has ruled that an employee’s employment contract did not entitle her to annual pay increments subject to satisfactory performance, regardless of HR’s assurance during the recruitment process that the employee’s pay would increase in this way. On review of the clause, this was not its meaning and there was also an entire agreement clause in the contract, which meant that the employee could not rely on the prior discussions with HR.

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Court of Appeal finds that bringing disciplinary proceedings was not a breach of the employer’s duty of care

The Court of Appeal has held that an employer did not breach its duty of care when it brought disciplinary proceedings against an employee suspected of giving a falsely positive reference about a former colleague. Whilst the allegations were not ultimately upheld, the decision to suspend was within the employer’s range of reasonable decisions.

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Buy-out payment for healthcare benefits was fully taxable

The First Tier Tribunal has held that a payment to a retired employee to buy-out his right to participate in his former employer’s healthcare scheme did not qualify as either a payment for termination of employment (which would qualify for a £30,000 income tax exemption) or a capital gain. The payment was deemed to be a payment under an employer funded retirement benefit scheme and therefore was subject to income tax and national insurance contributions as employment income.

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