header-logo header-logo

28 September 2017 / Charles Pigott
Issue: 7763 / Categories: Features
printer mail-detail

All in a week’s pay?

nlj_7763_pigott

Should a week’s pay be calculated to include employer’s pension contributions, asks Charles Pigott

  • The EAT has ruled that the statutory definition of a week’s pay extends to employer’s pension contributions.
  • This decision challenges a long-held orthodoxy that only gross pay should be taken into account when making the required calculations.

In Drossou v University of Sunderland UKEAT/0341/16/130 Mrs Justice Slade has surprised many in the legal community by holding that a week’s pay can include employer’s pension contributions. In this case the calculation of a week’s pay was required to determine the upper limit on the compensatory award for unfair dismissal, but her reasoning is capable of applying to all jurisdictions which use a week’s pay in order to compute employment tribunal awards.

Some industrial relations history

It seems that old orthodoxy about the calculation of a week’s pay can be traced back to a 1993 decision of the Court of Appeal in Port of London Authority v Payne [1994] IRLR 9. The underlying dispute concerned the redundancy of 17 dock

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

NLJ Career Profile: Nikki Bowker, Devonshires

NLJ Career Profile: Nikki Bowker, Devonshires

Nikki Bowker, head of litigation and dispute resolution at Devonshires, on career resilience, diversity in law and channelling Elle Woods when the pressure is on

Ellisons—Sarah Osborne

Ellisons—Sarah Osborne

Leasehold enfranchisement specialist joins residential property team

DWF—Chris Air

DWF—Chris Air

Firm strengthens commercial team in Manchester with partner appointment

NEWS
The High Court’s refusal to recognise a prolific sperm donor as a child’s legal parent has highlighted the risks of informal conception arrangements, according to Liam Hurren, associate at Kingsley Napley, in NLJ this week
The Court of Appeal’s decision in Mazur may have settled questions around litigation supervision, but the profession should not simply ‘move on’, argues Jennifer Coupland, CEO of CILEX, in this week's NLJ
A simple phrase like ‘subject to references’ may not protect employers as much as they think. Writing in NLJ this week, Ian Smith, barrister and emeritus professor of employment law at UEA, analyses recent employment cases showing how conditional job offers can still create binding contracts

An engagement ring may symbolise romance, but the courts remain decidedly practical about who keeps it after a split, writes Mark Pawlowski, barrister and professor emeritus of property law at the University of Greenwich, in this week's NLJ

Medical reporting organisation fees have become ‘the final battleground’ in modern costs litigation, says Kris Kilsby, costs lawyer at Peak Costs and council member of the Association of Costs Lawyers, in this week's NLJ
back-to-top-scroll