UK: Compensation awards could increase following change in calculation of a week’s pay

The EAT in University of Sunderland v Drossou has decided that, contrary to previous practice, employer pension contributions should be included in the calculation of a week’s pay. This will increase the value of awards, in particular where the full value of a week’s pay is used (ie, it is not capped), such as the unfair dismissal compensatory award and compensation for failure to inform and consult on TUPE transfers or collective redundancies. The impact could be particularly significant for employees in DB schemes.

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Filed under Jurisdiction: UK, Remuneration (including bonus and incentive plans)

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