Workplace Report October 2004

Features: Law Contracts

Contractual right to sick pay

Case 12: The facts

Ian Guthrie suffered an accident and was signed off work. Two company medical advisors and his own GP examined him; all agreed that he was genuinely sick, but they gave different expected dates for his return.

Guthrie followed his own GP's advice, and his employer stopped his entitlement to occupational sick pay because his date of return was later than that anticipated by the company medical advisors.

The ruling

The EAT noted that Guthrie had a reasonable expectation of payment on production of a medical certificate, and that his employer had never before denied sick pay where an illness had been established as genuine.

Although the employment contract gave the employer some discretion over sick pay, the EAT also noted that there is a trend away from the idea that this gives an employer unlimited discretion. The contract stated that sick pay was not payable unless management was satisfied that sickness absence was genuine. Once that had been established, Guthrie was entitled to expect sick pay.

Scottish Courage v Guthrie UKEAT/0788/03