Where an employer uses insurance policies for the benefit of employees there is an implied duty on the part of the employer to use its best endeavours to ensure that the insurance company gives proper consideration to the employees’ claims. The insurance company had misread the terms and conditions of the insurance policy and refused to pay when it should have done.
Held: The employer was required to pay the insurance shortfall to the employees as a debt.
Staughton LJ said, obiter, that there was a ‘good deal to be said’ for the view that the employee could not be dismissed save for cause after becoming entitled to receive benefits under a long-term sick scheme.
Judges:
Staughton LJ
Citations:
[1997] EWCA Civ 1954, [1997] IRLR 639
Jurisdiction:
England and Wales
Cited by:
Cited – First West Yorkshire Ltd (T/A First Leeds) v Haigh EAT 20-Nov-2007
EAT Unfair dismissal – Reasonableness of dismissal
Where an employee is long-term absent on grounds of ill health, and his pension scheme contains provisions entitling him to an ill health pension on grounds . .
Lists of cited by and citing cases may be incomplete.
Employment
Updated: 04 October 2022; Ref: scu.142350