EAT UNLAWFUL DEDUCTION FROM WAGES
The point in issue on the Claimant’s appeal was the correct construction of her contract of employment, providing for pay protection following a reorganisation and her redeployment to a lower salary post. The Tribunal had to determine the correct reference period of earnings for the relevant calculation. The words ‘three months immediately preceding the first day of employment in the new post’ meant that the last day of that reference period was the day before the Claimant’s first day of employment in the new Band 6 post. The Tribunal’s decision, that the reference period was the three previous, completed calendar months for which the Claimant was paid, was held to be in error. The appeal was allowed.
The Respondent’s cross appeal, that the judge erred in holding that these payments were ‘wages’ under s.27(1) ERA, was dismissed. The argument that they were exempt under s.27(2) as amounting to ‘compensation for loss of office’ failed. The payments made to the Claimant pursuant to the pay protection policy were held to be payments referable to her obligation to render her services under her contract of employment.
Judges:
Cox J
Citations:
[2012] UKEAT 0627 – 11 – 3011
Links:
Jurisdiction:
England and Wales
Employment
Updated: 09 November 2022; Ref: scu.466572