Labour Research December 2004

Law Matters

Party promise of more pay was not a legal contract

A promise of a wage increase made at a Christmas party was meant to offer comfort and reassurance but was not legally binding, an employment tribunal has ruled.

At the company's Christmas dinner-dance, Mr Judge's employer told him that within two years his pay would be increased, to bring it in line with another employee who held the same position but was paid considerably more than he was.

Although Judge's salary and bonus were increased over the next year-and-a-half, he was still not earning as much as his colleague.

Judge resigned and brought a claim of constructive dismissal, arguing that there had been a breach of trust and confidence. He also claimed that the promise made to him at the party had been a legal contract that his employer had breached by failing to pay him the same as his colleague.

However, the tribunal dismissed Judge's claim, finding that the employer had not intended to create a legal contract but was simply offering "words of comfort".

Judge v Crown Leisure Ltd UKEAT/0443/04