Labour Research (March 2002)

Law Queries

Law Queries

We've heard that our employer does not intend to give us a pay rise this year. We thought that the law gave us a right to at least a rise based on inflation.

There is no automatic right to pay rises under UK law. Unless your employment contracts specify that you will get at least an inflation proofed pay increase then there is no automatic right to one. However, if an employee has a "reasonable expectation" of receiving a pay increase, the tribunals can take this into account when assessing compensation in the event of an unfair dismissal.

More information: York Trailer Co v Sparkes [1973] Industrial Cases Reports 518


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