Amdocs Systems Group Ltd (appellant) v Langton (respondent)

Tuesday 28 June 2022

By Appellant’s Notice filed on 14/9/21, Amdocs Systems Group Limited (ASG) appeals against the order made by the EAT (HHJ Auerbach ) sealed on 24/8/21 dismissing ASG’s liability appeal and allowing their costs appeal and remitting the matter to a differently constituted ET for rehearing.

The C’s employment with ASG’s predecessor began in 2003. C received a letter of offer, summary of benefits and a contract. Letter of offer and summary of benefits set out the terms of a long-term sickness scheme and the level of protection under it, including an escalator of 5% per annum applying after first 52 weeks. ASG’s predecessor had insurance cover in respect of its obligation to pay IPP (including the escalator).

In 2009 C began a period of long-term sickness absence and then began to receive IPP. Following C’s transfer into ASG’s employment, he realised that the payments of IPP had not been including escalator. ASG informed him that the escalator had ceased in 2008 from when its underlying insurance cover did not cover it.

The Employment Tribunal held that C was contractually entitled to the escalator and therefore upheld claim for unlawful deduction from wages.

ASG appealed, on basis that correct construction of documentation was that the obligation of ASG was limited to the amount in respect of which it or its predecessor had insurance cover.

The EAT held that the summary of benefits provided to C contained terms that were clear and certain and intended to be incorporated. This conferred a contractual entitlement to the escalator.

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