Rosemary Connolly and Jenine McCourt, Partners at Rosemary Connolly Solicitors, Warrenpoint and Belfast write regular emails on GB case law that they think will interest employment lawyers and HR professionals. Sometimes they will discuss the importance of cases that we have already reported on via or weekly review emails. Other times they will refer you to entirely new cases that you might not have seen before. Highlighted on this occasion are:

1. Locke v Candy & Candy (Bonuses and Pay in Lieu of Notice)
2. Abdulla and ors v Birmingham City Council (Equal Pay)
3. Norman v Yellow Pages Sales Ltd (Compromise Agreements - Tax)
4. Southern Cross Healthcare v Perkins and Others (Contracts - Holidays)

===============================================
1. Locke v Candy & Candy [2010] EWCA Civ 1350

Bonuses and Pay in Lieu of Notice

The Claimant was dismissed 10 days short of one year of employment. He was paid 6 months' notice under a payment of lieu notice clause in his contract. He would have been entitled to £160,000 bonus had he remained employed by the company for 12 months. He sought to challenge the non-payment of bonus. As the sum that he was claiming was beyond the financial limit of the tribunal he lodged his claim in the High Court and then appealed to the Court of Appeal when unsuccessful.

The Court of Appeal held that the contract had to be held “holistically” and the bonus clause and its restrictions had to be applied when calculating the payment and, therefore, he was not entitled.
http://www.bailii.org/ew/cases/EWCA/Civ/2010/1350.html

===============================================
2. Abdulla and ors v Birmingham City Council [2010] EWHC 3303 (QB)

Equal Pay

The High Court held in December 2010 that equal pay claims that were out of time for proceeding in the employment tribunal can proceed as breach of contract claims in the High Court.

The Claimants in this case lodged breach of contract claims in the High Court relating to equal pay. The Council applied to have the claims struck out and argued that they would be more ‘conveniently disposed’ of in the employment tribunal. The High Court rejected this argument and confirmed that the legislation had not stipulated that all equal pay claims must only been lodged in the employment tribunal and therefore they could be dealt with at the High Court. The High Court also stated that the Council could not state that the claim would be more ‘conveniently disposed’ of when it would mean that the claim would be rejected at the Tribunal due to time limits. It also stated that a ‘strike out’ would not be in the interests of justice.
http://www.bailii.org/ew/cases/EWHC/QB/2010/3303.html

===============================================
3. Norman v Yellow Pages Sales Ltd [2010] EWCA Civ 1393

Compromise Agreements - Tax

The Court of Appeal has held that if a compromise agreement was agreed and it did not apportion its award between taxable and non taxable elements, it was for the employee, not the employer, who paid the employee’s tax on behalf of the employee, to sort out the position with the Customs and Revenue Commissioners.
http://www.bailii.org/ew/cases/EWCA/Civ/2010/1395.html

===============================================
4. Southern Cross Healthcare v Perkins and Others [2010] EWCA Civ 1442

Contracts - Holidays

The respondents are employed by the appellant. They were first employed by the appellant's predecessor with a contract of employment specifying 20 days with an increase in holidays for long service up to three additional days. In 2000 this was increased to 4 weeks per year with an uplift for long service up to one week. This was protected in the transfer.

In 2007 holidays were increased under the Working Time Regulations. Existing staff of the appellants received an increase but the respondents did not receive any increase as they were receiving holidays beyond the statutory maximum.

The Respondents claimed that they should have been afforded the one week uplift for long service on top of the statutory maximum of 28 days. The Appellant disagreed.

The Tribunal held that they were entitled to the 5 extra days on top of the statutory maximum based on the TUPE transfer.

The Court of Appeal held that the employment tribunals had no jurisdiction to construe the holiday provisions of the claimant’s contracts but that any contractual claim could be brought in the civil courts.
http://www.bailii.org/ew/cases/EWCA/Civ/2010/1442.html

===============================================
Legal-Island would like to thank Jenine McCourt, who provided the main content of this email. Jenine is a partner in Rosemary Connolly Solicitors with offices in Warrenpoint and Belfast. Jenine works exclusively in employment law and can be contacted on 028 4175 3121 or 028 9066 0823.
http://www.solicitorsni.net/default.asp

Jenine McCourt will be one of the presenters at 'Essentials of Equality Law' on 10 March. See below for details.

===============================================
Legal-Island
3 February 2011

The Belfast Telegraph sponsors Legal-Island's employment law and HR update email services. See the Belfast Telegraph online for all the latest business and employment news:
http://bit.ly/15BLCr

Legal-Island's 2011 Programme of Events is sponsored by Carecall NI. Carecall is a leading provider of employee support services: http://bit.ly/PtJlt