A review of a number of recent employment tribunal decisions suggests that some employers remain unaware of the implications of, or are struggling with, the Employment Equality (Age) Regulations 2006 (SI 2006/1031), which became law on 1 October 2006. The decisions also demonstrate the approach that the tribunals might take to the question of justification of discrimination and to the assessment of injury to feelings compensation.
In Commerzbank AG v Keen [2007] IRLR 132 CA the Court of Appeal held that an employer did not act in breach of the implied terms of a contract of employment in awarding to a highly paid employee lower bonuses than those recommended by his manager. Further, the terms of employment contracts are not covered by the provisions of the Unfair Contract Terms Act 1977.
In Hoyland v Asda Stores Ltd [2006] All ER (D) 133 CS, the Court of Session holds that despite being described as "discretionary" a bonus scheme was "regulated" by the employee's contract of employment and therefore fell outside the scope of the Sex Discrimination Act 1975.
In Farrell Matthews & Weir v Hansen, the EAT holds that a non-contractual bonus that had been declared constituted wages under s.27(3) of the Employment Rights Act 1996. The employer's failure to pay it therefore amounted to an unlawful deduction from wages.