Defence of set-off available in Tribunal proceedings

The Claimant brought a number of claims including a breach of contract claim for loss of pension rights during his notice period. The employer counter-claimed for overpayment of wages but this was held to be out of time. However, given the pension rights claim was upheld, despite the fact that the counter-claim was out of time, the Tribunal, upheld by the EAT, held that nonetheless the defence of set-off was available so that the employer could off-set the overpaid wages against the claim for pension contributions during the Claimant’s notice period, which it would otherwise had been forced to pay.

This legal update is provided for general information purposes only and should not be applied to specific circumstances without prior consultation with us.

For further details on any of the issues covered in this update please contact Gemma Ospedale, Partner in Employment on 020 7583 2222.