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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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Employer failed to make reasonable adjustments to redeploy disabled employee being made redundant

The Employment Appeal Tribunal has held that an employer failed to make reasonable adjustments to redeploy one of its disabled employees who was at risk of redundancy and could not attend interviews. The EAT held that the employer should have made reasonable adjustments and offered an alternative way of assessing the employee’s suitability for redeployment roles, even though the employee had been unresponsive when HR suggested alternative roles.

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Employee’s previous breaches did not bar a constructive dismissal claim

The Employment Appeal Tribunal has held that an employee’s previous breach of contract did not prevent him from bringing a claim for constructive dismissal against his former employer. However, the EAT noted that if the employer established that it could have fairly dismissed the employee had it known about his previous breach of contract, the employee’s compensation could be reduced by up to 100%.

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HR Consultant’s letter could bind employer to higher pay

The Employment Appeal Tribunal held that Sheffield City Council was bound by the rates of pay erroneously set out in a letter from an HR consultant to its employees. It was held that the letter was binding on the employer because the HR consultant was held out as being authorised to make this communication.

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