The applicants challenged the calculation of sums payable to them by the respondent after the insolvency of their respective employers. The ET had found against them, and they appealed. Payments were subject to a cap at pounds 220 per week. The respondent applied the cap, and then deducted NI contributions. The appellants argued that the deductions should have been made first, and then the cap applied. The tribunal felt bound by the Morris case. Had that been overruled by Mann?
Held: Morris remained correct. Reference in the statute to the gross pay suggested that that was the figure to which the cap applied. Mann did not overrule Morris.
The tribunal was asked whether, in making payments to each Appellant, pursuant to an application under section 182 of the Employment Rights Act 1996, in respect of arrears of pay owed by his/her former, insolvent employer, the Respondent has correctly calculated the payments made. At the time of the payments made in this case there was a statutory cap of andpound;220 in respect of any one week (the figure is currently andpound;240). The Respondent took the weekly, gross pay figure for each Appellant, applied the statutory cap and then deducted from that figure amounts due by way of national insurance contributions and any relevant benefits to be recouped pursuant to Regulations. The Appellants contend that the Respondent should have made all appropriate deductions from the gross figure first, in order to determine the sum that was payable to the employee by the insolvent employer, before applying the statutory cap.
Held: The appeals were dismissed.
EAT/0026/01, [2001] UKEAT 0026 – 01 – 2109, [2001] Emp LR 1342, [2002] ICR 225, [2002] IRLR 195
Bailii
Employment Rights Act 1996 186, Council Directive 80/987/EEC on the approximation of the laws of the Member States relating to the protection of employees in the event of insolvency of their employer
England and Wales
Updated: 14 October 2021; Ref: scu.442040
