NVCS Ltd v Revenue & Customs (STATUTORY MATERNITY PAY - entitlement to SMP) [2019] UKFTT 635 (TC) (17 October 2019)

NVCS Ltd v Revenue & Customs (STATUTORY MATERNITY PAY - entitlement to SMP) [2019] UKFTT 635 (TC) (17 October 2019)

A COT3 agreement cannot compromise or settle a claim to statutory maternity pay unless the payment is expressly included and made; the absence of express reference to SMP in the agreement means Mrs Dare's entitlement to SMP was not settled or paid by the £10,000 compensation.

Citation
[2019] UKFTT 635
Parties
Appellant: NVCS Limited; First Respondent: The Commissioners for Her Majesty’s Revenue & Customs; Second Respondent: Kate Dare
Jurisdiction
United Kingdom
Judgment Date
17 October 2019
Procedural Posture
Tax Appeal / First Instance Tribunal Decision
Outcome
NVCS's appeal dismissed; Mrs Dare's cross-appeal allowed.
Legal Topics
Statutory Maternity Pay, Settlement Agreements, COT3 Agreements, Waiver of Statutory Rights, Taxation of Employment Payments
Employment Law Tax Law Social Security Law Statutory Maternity Pay Settlement Agreements COT3 Agreements Waiver of Statutory Rights Taxation of Employment Payments

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Parties

NVCS Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

First Respondent

Kate Dare

Second Respondent

Procedural Posture

Tax Appeal / First Instance Tribunal Decision

Legal Issues

  1. 1 Whether a COT3 settlement agreement can compromise or include a claim to statutory maternity pay (SMP)
  2. 2 Whether the £10,000 compensation payment included Mrs Dare's entitlement to SMP

Ratio Decidendi

A COT3 agreement cannot compromise or settle a claim to statutory maternity pay unless the payment is expressly included and made; the absence of express reference to SMP in the agreement means Mrs Dare's entitlement to SMP was not settled or paid by the £10,000 compensation.

Court Disposition

NVCS's appeal dismissed; Mrs Dare's cross-appeal allowed.

Orders

  • NVCS to pay Mrs Dare her entitlement to statutory maternity pay for the period from 16 October 2016 to 28 January 2017, amounting to £4475.28.