Construction of contract: PHI cover did not cease when employee left service

A restriction in an insurance policy underwriting a contractual permanent health insurance scheme, which disentitled an employee to benefits on leaving service, was not incorporated by reference or implication into his contract of employment, holds the High Court in Villella v MFI Furniture Centres Ltd [1999] IRLR 468. The employee was therefore entitled to continue receiving benefits despite his employer's assertion, which the evidence did not support, that his employment had terminated.