Abrahall & Ors v Nottingham City Council & Anor [2018] EWCA Civ 796 (19 April 2018)

Abrahall & Ors v Nottingham City Council & Anor [2018] EWCA Civ 796 (19 April 2018)

The Court held that the claimants in all three groups had a contractual right to pay progression at the time of the pay freeze. The relevant contractual documents, including the core contract, explanatory booklet, and incorporated collective agreement, either expressly or by necessary implication provided for annual pay progression. The Council's unilateral pay freeze constituted a breach of contract. The employees' continued work without protest did not amount to acceptance of a contractual variation, as there was no clear and unequivocal conduct indicating such acceptance.

Citation
[2018] EWCA Civ 796
Parties
Appellants: Abrahall & Others; Respondents: Nottingham City Council & Anr
Jurisdiction
England and Wales
Judgment Date
19 April 2018
Procedural Posture
Employment Appeal / Appeal From Employment Appeal Tribunal to Court of Appeal
Outcome
Appeal dismissed; cross-appeal allowed
Legal Topics
Unlawful Deduction of Wages, Contractual Entitlement to Pay Progression, Variation of Contract by Conduct, Collective Agreements, Interpretation of Employment Contracts
Employment Law Contract Law Unlawful Deduction of Wages Contractual Entitlement to Pay Progression Variation of Contract by Conduct Collective Agreements Interpretation of Employment Contracts

Case Brief

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Parties

Abrahall & Others

Appellants

Nottingham City Council & Anr

Respondents

Procedural Posture

Employment Appeal / Appeal From Employment Appeal Tribunal to Court of Appeal

Legal Issues

  1. 1 Whether employees had a contractual right to annual pay progression under single status contracts
  2. 2 Whether the Council's implementation of a pay freeze constituted a breach of contract
  3. 3 Whether employees' continued work without protest amounted to acceptance of a contractual variation

Ratio Decidendi

The Court held that the claimants in all three groups had a contractual right to pay progression at the time of the pay freeze. The relevant contractual documents, including the core contract, explanatory booklet, and incorporated collective agreement, either expressly or by necessary implication provided for annual pay progression. The Council's unilateral pay freeze constituted a breach of contract. The employees' continued work without protest did not amount to acceptance of a contractual variation, as there was no clear and unequivocal conduct indicating such acceptance.

Court Disposition

Appeal dismissed; cross-appeal allowed

Orders

  • Declaration that claimants in all three groups had a contractual right to pay progression at the relevant time
  • Council's withholding of increments was a breach of contract