Webber v NHS Direct [2012]
Decision Number:
Published on: 07/12/2012
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Background
The Claimant accepted a lower paid job with her employer, the Respondents, as part of a reorganisation. A payment protection policy was in place which would provide the Claimant with her existing salary for three years. This salary was calculated by taking a monthly average of the payments eligible for protection earned in the three months immediately preceding the first day of employment in the new post.The Respondent calculated the salary by reference to the Claimant‟s wages for the last three complete months before the reorganisation. The Claimant submitted the relevant period ended the day immediately preceding the day she started her new job. This made a difference of over £3,500 per annum to her salary. The Respondent argued the payments were compensation for loss of office as opposed to wages and so the Employment Tribunal did not have jurisdiction to hear the claim of unlawful deduction from wages.The Employment Appeal Tribunal allowed the appeal, stating that the correct reference period was the three months immediately preceding the change of post and rejected the Respondent‟s submissions in relation to jurisdiction.The payments made pursuant to the pay protection policy were payments referable to her obligation to render her services under her contract of employment and were therefore wages. They did not fall within the exemption for compensation for loss of office and so fell within the jurisdiction of the Tribunal.http://bit.ly/Zp1jd1
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The information in this article is provided as part of Legal Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.
This article is correct at 07/12/2012
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