Latest case reports added to HR & Compliance Centre

We provide a round-up of case reports added to XpertHR this week, covering: bonus schemes; compensation; and controlling shareholders and employment status. 

  • Contracts of employment: Tribunal erred in not determining to which aspect of a bonus scheme the employer's discretion attached In Small and others v Boots Co and another [2009] All ER (D) 200 (Jan) EAT, the EAT held that the fact that the employer had stated that a bonus was discretionary did not necessarily mean that it had no contractual effect. The employer's discretion could relate to: whether or not to operate a bonus system at all; whether or not to award a bonus in a given year; or the amount of bonus to be awarded. (Employment Review)
  • Unfair dismissal: Norton Tool principle applies to unfair constructive dismissals In Stuart Peters Ltd v Bell EAT/0272/08, the EAT held that the Norton Tool principle, under which compensation for unfair dismissal includes full payment for the employee's notice period, even if the employee found work during that period, applies in cases of constructive, as well as express, dismissal. (Employment Review)
  • Controlling shareholders can also be employees In Secretary of State for Business, Enterprise and Regulatory Reform v Neufeld and Howe [2009] EWCA Civ 280 CA, the Court of Appeal held that there is no reason in principle why a director and controlling shareholder cannot also be an employee. (Personnel Today)

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