Outcome
Individual claims
The tribunal rejected the claimant's argument that he was entitled to be paid at the top of the pay scale in perpetuity based on custom and practice. The tribunal found that such a term did not make sense and was not reasonable, and therefore could not be implied into the contract despite the claimant having been paid at that rate from 2018.
Facts
The claimant alleged he was entitled to be paid at the top of the pay scale (SP7) in perpetuity because he had been paid at that rate since 2018, arguing this had become an implied term by custom and practice. He was provided with a written contract in May 2022 which confirmed his salary but contained no such express term, and he signed it in September 2022. The claimant brought an unlawful deduction from wages claim when the respondent ceased paying him at the top of the scale.
Decision
The tribunal rejected the claim, finding that the alleged custom and practice term did not meet the necessary tests, particularly that it did not make sense or was not reasonable. The tribunal also rejected arguments that the 2022 contract was invalid under s.4 ERA 1996 for not being signed by the employer. The reconsideration application was refused as having no reasonable prospects of success.
Practical note
A long-standing payment practice does not automatically create an implied contractual term; the alleged custom and practice must still meet the tests of notoriety, certainty, and critically, reasonableness - being paid at the top of a pay scale indefinitely was found not to make sense.
Legal authorities cited
Statutes
Case details
- Case number
- 6021382/2025
- Decision date
- 10 November 2025
- Hearing type
- reconsideration
- Hearing days
- 1
- Classification
- procedural
Respondent
- Name
- Soar Community
- Sector
- charity
- Represented
- No
Claimant representation
- Represented
- No