Long Term Disability Benefits

A recent EAT judgement on Long Term Disability Benefits answered the following question:

“Where an employer was contractually obliged to provide an employee with long-term disability benefits until his ‘return to work’, did that mean the entitlement would cease once he was capable of taking up some kind of paid employment?”

No, held the EAT, in ICTS Limited v Visram, in their judgement published on 27th March.

Dismissed for Incapacity

Mr Visram was dismissed for incapacity, having left on sick leave with work-related stress. His complaints to the tribunal of unfair dismissal and disability discrimination succeeded.

The definition of ‘Return to Work’

The judgement basically centred on the definition of ‘return to work’ in the contract of employment.

The tribunal held that ‘return to work’ meant return to the work from which he had gone sick. There was no prospect of the Claimant ever being able to do that, so he was entitled to be compensated for loss of benefits until death or retirement.

Paul Burton, Head of Employment, says “It is important to be clear in a contract of employment, and often EAT rulings highlight grey areas such as those outlined in this case.

If you are unsure about definitions in your contract of employment, or have queries about any other issues highlighted in this article, our Employment Team or our Corporate & Commercial Team are more than happy to assist and advise."

 

At Frettens, all of our solicitors offer a free initial meeting or chat on the phone to answer your questions. If this article raises issues for you or your business, please call us on 01202 499255 Kate or Paul will be happy to discuss it with you.