Wetherill & Ors v Birmingham City Council [2007] EWCA Civ 599 (19 June 2007)

Wetherill & Ors v Birmingham City Council [2007] EWCA Civ 599 (19 June 2007)

The Council was entitled to change the car user allowance scheme from a vehicle-specific to a duties-specific basis, but was required to provide adequate transitional arrangements for employees who had acquired rights under the previous practice. The failure to do so constituted a breach of contract, but this breach was not continuing; affected employees are entitled to damages for the period of inadequate notice, not ongoing payment at the previous rates.

Citation
[2007] EWCA Civ 599
Parties
Claimants/respondents: Wetherill & Ors; Defendant/appellant: Birmingham City Council
Jurisdiction
England and Wales
Judgment Date
19 June 2007
Procedural Posture
Civil Appeal / Appeal From Birmingham County Court Judgment
Outcome
Appeal allowed in part
Legal Topics
Variation of Employment Contracts, Implied Terms in Employment, Car User Allowances, Unilateral Variation by Employer, Transitional Arrangements in Employment Terms
Employment Law Contract Law Local Government Law Variation of Employment Contracts Implied Terms in Employment Car User Allowances Unilateral Variation by Employer Transitional Arrangements in Employment Terms

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 6 Party arguments 2
Sign in to unlock

Parties

Wetherill & Ors

Claimants/respondents

Birmingham City Council

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Birmingham County Court Judgment

Legal Issues

  1. 1 Whether Birmingham City Council's withdrawal of Band 3 car user allowance constituted a continuing breach of contract for essential car users
  2. 2 Whether the Council could unilaterally vary the terms of car user allowance and under what conditions
  3. 3 Whether adequate transitional arrangements were required for affected employees

Ratio Decidendi

The Council was entitled to change the car user allowance scheme from a vehicle-specific to a duties-specific basis, but was required to provide adequate transitional arrangements for employees who had acquired rights under the previous practice. The failure to do so constituted a breach of contract, but this breach was not continuing; affected employees are entitled to damages for the period of inadequate notice, not ongoing payment at the previous rates.

Court Disposition

Appeal allowed in part

Orders

  • Declaration that the Council was in breach of contract by failing to provide adequate transitional arrangements when withdrawing Band 3 allowance
  • Damages limited to the period of inadequate notice or transitional period, not a continuing entitlement to Band 3 rates