Claimant v Amdocs Systems Group Limited

Outcome

Facts

The Claimant was employed by the Respondent and entitled to income protection scheme benefits including an annual 5% escalator. The Respondent's insurance policy changed in 2008, removing cover for the escalator, but the Claimant's contractual entitlement remained. Following earlier tribunal litigation establishing the Claimant's entitlement, the Respondent attempted to vary the contract to limit payments to insurance cover in October 2019 and April 2023. Three further unlawful deduction claims were brought concerning non-payment of the escalator. The Claimant sought costs on an indemnity basis following his success at the final hearing.

Decision

The tribunal dismissed the Claimant's costs application. The tribunal found that while the Claimant succeeded in his unlawful deduction claims (the 2019 and 2023 variations were ineffective), the Respondent's defence had reasonable prospects of success. The Respondent successfully established it had a power to vary the contract (contrary to the Claimant's primary case), and its arguments on construction of the contract and the Braganza point were properly arguable. The outcome was nuanced with both parties achieving some success.

Practical note

Legal authorities cited