Chambers News

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09.07.2010
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News Details

Adam Solomon and Martin Palmer appear on opposite sides of City bonus case
09.07.2010


Both Adam Solomon and Martin Palmer appeared (on opposite sides) in the city bonus case of Rutherford v Seymour Pierce Ltd (just reported in the most recent IRLS as [2010] IRLR 606). The main issue was whether there was an implied contractual term that in order to be eligible to receive a bonus, an employee has to be employed and/or not under notice of termination as at the date of the award. Mr Justice Coulson rejected the Defendant’s argument and held that no such term could be implied into the Claimant's contract of employment, and states that such a term would be “manifestly unreasonable” because “it would allow SPL the unfettered right to sack an employee the day before the bonus was distributed solely in order to avoid paying that bonus. That cannot be right.”