Contracts of employment

Effect of illegality on discrimination claims

A worker could claim race discrimination, despite working illegally in the UK.
Hounga v Allen
 

Increasing disciplinary sanctions on appeal

A contractual disciplinary procedure did not allow the employer to increase a sanction from written warning to dismissal on appeal.
McMillan v Airedale NHS Foundation Trust
 

HR consultant’s letter could bind employer to higher pay

An HR consultant’s letter to staff informing them of the outcome of their grievance about pay was capable of creating a contractual right to higher pay – and there was no need for formal acceptance; the employees continuing to work sufficed.
Hershaw v Sheffield City Council
 

Deduction for failure to serve notice period was not a penalty clause

A clause in a contract of employment empowering the employer to deduct a month’s salary for a departing employee’s failure to work her notice period was enforceable and was not a penalty clause.
Li v First Marine Solutions Ltd
 

When discretionary redundancy payments become contractual

A consistent practice of calculating redundancy payments without applying the statutory caps converted into an implied contractual right for future practice upon which employees could rely.
Peacock Stores v Peregrine
 

Employer not obliged to pay for untaken flexi-hours on termination

An employee who’d accrued over 1,000 hours of untaken flexi-time was not entitled to be paid for it when he was dismissed. His contract did not cover this issue and there was no legal requirement to imply a term to deal with it.
Vision Events (UK) Ltd v Paterson
 


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