Calculation Of A Week's Pay Must Include Employer Pension Contributions

Departing from long established practice, the Employment Appeal Tribunal has decided that the calculation of a week's pay should include employer pension contributions.

The calculation of a "week's pay" has important implications for how a number of employment tribunal awards are calculated. For example, where there is a failure to inform and consult in a collective redundancy situation, the award is up to 90 days' pay, or in a TUPE situation, the award is up to 13 weeks' pay. To calculate these awards there is no statutory cap on the week's pay, so it is important when determining the amount of compensation due, that a week's pay is calculated accurately.

This case of University of Sunderland v Drossou considered how to calculate a week's pay for the purposes of an unfair dismissal compensatory award and...