0370 270 6000
Home arrow Insights & events arrow Resources arrow Blogs arrow Be careful of your labels

Be careful of your labels

28 June 2011

The decision in Publicis Consultants v O’Farrell is a stark warning to employers to be careful how they label termination payments in dismissal letters.

O’Farrell claimed breach of contract because Publicis’ dismissed her on four days’ notice instead of her three months’ contractual notice. O’Farrell was therefore entitled to claim damages for breach of contract, equivalent to her 3 months’ notice. However, her dismissal letter stated that she would receive a “ex gratia payment equivalent to three month’s salary”. Publicis claimed that the ex gratia payment was intended to compensate her for her period of notice and therefore should be offset against her notice pay. The EAT held the money was unambiguously advanced as an ex gratia payment and should not therefore be offset against her claim.

Care should be taken when labelling payments as ex gratia and it be made clear that the payment is intended to compensate the employee for their loss of notice to ensure it will be offset against any claim for notice pay.

Related opinions

Vaccinations in the Workplace: a higher expectation than one may think

There is currently no legislation requiring employees within the UK to have the COVID-19 vaccine. However, a recent Acas survey found that approximately 22% of employers intend to require their new staff to have the COVID-19 vaccination, and 21% would require their existing staff to be vaccinated too.

View blog

Fire and Re-hire

In late March, P&O Ferries made 800 members of staff redundant instantaneously and with no notice, to then go on to replace them with cheaper agency workers. This sparked wide range shock and triggered government interest in introducing a new statutory code of practice covering fire and rehire.

View blog

Planning the future of mental health and wellbeing

Throughout the pandemic with the Covid-19 isolations and with many of us (still) working from home, there seems to have been sea-change, a recognition of the importance of mental health and wellbeing.

View blog

Trans Rights: A transitionary phase socially, politically and legally.

31 March was International Transgender Day of Visibility: a day to celebrate the transgender community whilst raising awareness of the discrimination they face on a daily basis.

View blog

View all blogs

Mailing list sign up

Select which mailings you would like to receive from us.

Sign up

Quick links

Information

  1. ISO 27001 INFORMATION SECURITY MANAGEMENT UKAS
  2. Investors in people
  3. Lexcel
  5. Plain English Campaign Approved

© Copyright Browne Jacobson LLP 2022 - All rights reserved