PHI And Obligation To Cover Payments Under TUPE

Published date13 September 2021
Law FirmTrowers & Hamlins
AuthorMs Emma Burrows and Nicola Ihnatowicz

The Employment Appeal Tribunal (EAT) has held in Amdocs Systems Group Ltd v Langton that an employer was liable to pay the level of income protection payments set out in an offer letter and summary of benefits provided by the employee's original employer prior to a TUPE transfer.

The "escalator" part of the payments was not covered by the employer's insurance, but the employer was still obliged to pay them.

The claimant was employed by Cramer Systems Ltd from 2003. He received an offer letter, a summary of benefits and a contract of service. Both the letter and the summary set out the terms of a long-term sickness absence scheme and the level of income protection payments (IPP) under it. These included reference to an "escalator" of 5% per annum which would apply after the first 52...

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