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

Shakespeare Martineau—David Vaughan

Shakespeare Martineau—David Vaughan

Shakespeare Martineau appoints new London office head as firm continues investment in capital

Browne Jacobson—Kevin Moore

Browne Jacobson—Kevin Moore

Browne Jacobson strengthens All-Island life sciences platform with appointment of leading Galway MedTech lawyer

Clarke Willmott—Latitude Law

Clarke Willmott—Latitude Law

National law firm strengthens commercial offering with acquisition of leading immigration practice

NEWS
Mr Justice Nicklin’s decision to order costs on an indemnity basis may be a ‘significant win’ but it’s still ‘far from game, set and match’ for Associated Newspapers, a former costs judge has said
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners
back-to-top-scroll