Posted by Gemma Ospedale, Partner
On 1 September 2016 Withy King LLP merged with Royds LLP. The trading name for the merged firm is Royds Withy King. All content produced prior to this date will remain in the name of the firms pre-merger.
Refusal to extend PHI cover not discriminatory
In Smith v Gartner UK Limited the EAT has upheld an Employment Tribunal decision to strike out an employee’s claim for unlawful deduction from wages and direct age discrimination. When the employee reached 60 years old the employer ended payments under the PHI scheme because these were the terms of the policy when she first claimed the benefit in 2003. The employer had introduced a new scheme in 2007 which covered eligible employees up to age of 65 but the Claimant was not eligible under the terms of that scheme as she was not working immediately before putting in the claim. The EAT considered that the Tribunal was correct to find that the contractual documentation only required the employer to provide a PHI scheme and not to make further payments to the employee if payments were not made by the insurer. A decision not to cover the Claimant beyond 60 was the insurer’s decision and not the employer’s and there was therefore no direct age discrimination by the employer.
It pays to employ the right employment solicitor