Ms Fahey had been off sick for a year before her employment was terminated. She brought tribunal claims, including one for unlawful deductions. During her notice period, the Trust had made deductions from her basic pay because it assumed Ms Fahey would have been receiving incapacity benefit. Had she continued to receive her full salary, she would have earned more while off sick than had she been in work, the Trust argued.
The tribunal found in the Trust's favour but the Employment Appeal Tribunal didn't. It held that there was no evidence that the Trust had been contractually entitled to make the salary deduction.
A reminder that key to a legitimate salary deduction is a valid clause in an employee's contract.
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