Health benefits

New and updated

• Type:

  Employment law cases

  Case of the week: No implied non-dismissal term where employee entitled to PHI

  This week's case of the week, provided by DLA Piper, considers whether or not a non-dismissal term can be implied into a contract of employment where the employee is entitled to permanent health insurance (PHI).

• Type:

  FAQs

  Can an employer stop providing group risk insured benefits such as life assurance or private medical cover to employees when they reach a certain age?

• Type:

  Contract clauses

  Permanent health insurance contract clause

  A model contract clause for use where employees are offered permanent health insurance as part of their terms and conditions of employment.

• Date:

  21 February 2011

  Type:

  Employment law cases

  Tribunal's literal interpretation of long-term disability scheme was correct

  The Employment Appeal Tribunal has held that, on its true construction, a company's long-term disability scheme applied to employees who were permanently incapable of employment in any capacity, rather than merely incapable of working for the company. 

• Date:

  20 June 2003

  Type:

  Employment law cases

  Contracts of employment: Employer was under freestanding contractual obligation to make disability payments

  In Pioneer Technology (UK) Ltd v Jowitt, the Court of Appeal holds that a contractual clause that, independently of the employer's insurance policy, provided for long-term disability payments to be made to employees no longer able to work due to illness or injury, amounted to a freestanding obligation on the employer to provide such payments to a qualifying employee in circumstances where cover was excluded by the insurance policy.

• Date:

  21 February 2003

  Type:

  Employment law cases

  Contracts of employment: Duty on employer to pursue insurers for PHI payments

  In Marlow v East Thames Housing Group Ltd, the High Court holds that where an employee is contractually entitled to benefits paid by insurers under a permanent health insurance policy with the employer, the employer is bound to take all reasonable steps to secure those benefits from the insurers. This could, depending on the circumstances, entail pursuing litigation against the insurers.

• Date:

  21 February 2003

  Type:

  Employment law cases

  Contracts of employment: Employee was entitled to long-term incapacity benefit

  In Walton v Airtours plc and another, the Court of Appeal holds that an airline pilot who was unable to continue with his job after becoming ill with chronic fatigue syndrome, but was fit to undertake light part-time work with rehabilitation and a programme of support, remained entitled to benefits under the employer's PHI scheme, notwithstanding that those benefits were payable in the long term only if the employee was unable to "follow any occupation".

• Date:

  1 November 1999

  Type:

  Employment law cases

  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.

• Date:

  1 May 1997

  Type:

  Employment law cases

  Adin v Sedco Forex International Resources Ltd

  In Adin v Sedco Forex International Resources Ltd [1997] IRLR 280 CS, the Court of Session held that if an employer provides sickness benefits it will be a breach of contract to dismiss an employee on grounds of ill health while he or she has sickness benefit outstanding.

• Date:

  22 February 1991

  Type:

  Employment law cases

  Contracts of employment: Implied term on employee insurance cover

  In Rutherford v Radio Rentals Ltd, the Court of Session holds that to give effect to an employer's contractual obligation to provide personal accident insurance for its employees, it may be necessary to imply a further term that the employer must make a payment to any employee who qualifies under the terms of the insurance policy referred to in the contract. The employer cannot discharge its obligations merely by relying on a refusal by the insurance company to honour the policy.