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 an employee's statutory entitlement to SMP unless the payment is expressly made for SMP; the absence of express reference to SMP in the agreement means the £10,000 payment did not include SMP, and Mrs Dare remains entitled to SMP in addition to the settlement sum.

Citation
[2019] UKFTT 635 (TC)
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 Tier Tribunal Decision
Outcome
appeal dismissed; cross-appeal allowed
Legal Topics
Statutory Maternity Pay, Settlement Agreements, COT3 Agreements, Waiver of Statutory Rights
Employment Law Tax Law Social Security Law Statutory Maternity Pay Settlement Agreements COT3 Agreements Waiver of Statutory Rights

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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 Tier Tribunal Decision

Legal Issues

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

Ratio Decidendi

A COT3 agreement cannot compromise an employee's statutory entitlement to SMP unless the payment is expressly made for SMP; the absence of express reference to SMP in the agreement means the £10,000 payment did not include SMP, and Mrs Dare remains entitled to SMP in addition to the settlement sum.

Court Disposition

appeal dismissed; cross-appeal allowed

Orders

  • NVCS's appeal is dismissed.
  • Mrs Dare's cross-appeal is allowed.