Late in 2005 seven Senior Executives, employees of the Northern Health and Social Services Board and the Eastern Health and Social Services Board made an application to an Industrial Tribunal relating to the differential rate of salary review increases paid to Senior Executives and other Senior Managers in 2001/2002. The Industrial Tribunal held its hearings on 24th and 25th October and 24th November 2005. Its written decision was published on 9th February 2006.
The Claimants in this case were all employed by either the Northern Health and Social Services Board or the Eastern Health and Social Services Board. Each of them was employed at Director level within the Board. The issue for the Tribunal was whether the contract of employment held by the individual applicants included an implied term or condition that they should receive the same annual cost of living increase as all other Senior Managers within the HPSS and that these increases would be consistent with the Whitely Council rates of increase of pay in each year. The Applicants all had contracts of employment that pre-dated the 1st October 2001 when then new Senior Executive contract was introduced. In 2001/2002 the Boards awarded the Applicants a cost of living increase at a lower rate than other Senior Managers. Accordingly the Senior Executives applied to the Tribunal alleging breach of contract in the form of an unlawful deduction from their wages.
It was the unanimous decision of the Tribunal that the Claimant in the test case had suffered an unlawful deduction from his wages contrary to Article 45 of the Employment Rights (Northern Ireland) Order 1996 in that he was awarded a cost of living increase in salary for 2001/2002 at a lower rate than that which he was entitled to under his contract of employment. In coming to this decision the Industrial Tribunal found that it is quite clear that the practice regarding pay increases had been well established over the years and the Tribunal was therefore prepared to imply same into each and every contract.
This decision has had far reaching consequences for Senior Executive staff on employment contracts that predate 1st October 2001. The average recoupment in respect of arrears is in the region of £7,000 per Applicant. In our estimation, the decision will affect 170 individual employees. This equates to back pay for all employees in the region of £1.2m.