In Commissioners of Inland Revenue v Ainsworth and others, the Court of Appeal holds that workers absent through long-term sick leave who have exhausted their entitlement to sick pay are not entitled to four weeks' holiday pay when they have done no work during the leave year.
In Scotts Company (UK) Ltd v Budd, the EAT holds that an employee who had exhausted his contractual entitlement to sick pay, and had remained on unpaid sick leave for a year before he was dismissed, was not entitled to a week's pay for each week of his statutory minimum notice period.
Where a contract of employment provided that "the employer may make a payment in lieu of notice to the employee" and the employer chose to summarily dismiss the employee without cause or pay in lieu of notice, the employee's claim was for damages for wrongful dismissal, subject to his duty to mitigate his loss, and not for a sum due under the contract, holds the Court of Appeal, by a majority, in Cerberus Software Ltd v Rowley.
A provision of a contract of employment, which entitled the employer to terminate the contract either by giving the employee notice or summarily on paying him in lieu of notice, did not give the employer a third option of giving no notice and making no, or less than full, payment, holds the EAT in Cerberus Software Ltd v Rowley.