This Practice Note examines the nature of pay or remuneration. It considers the employer’s duty to pay wages or salary, the ‘work/wages bargain’ and the effect of factors such as sickness or other impediment, an employee’s unwillingness to work and absence from work for other reasons. It also examines regulation of the amount of wages and outlines an employee’s right to an itemised pay statement and remedies where there is a failure to pay wages. It goes on to outline the different types of statutory and other pay and signposts other relevant materials. Interaction of common law and statutory rights The essence of employment is pay in return for work; the employer's obligation to provide consideration for the individual’s work and skill in the form of a wage or other remuneration is generally regarded as a fundamental ingredient of a contract of employment, as set out in Ready-Mixed Concrete (see Practice Note: Employee status—Determining whether an individual is an employee: overview). Duty to pay wages There is a duty to pay wages whenever an employee is ready, willing and

The system by which an employer or pension provider makes certain statutory deductions from an employee's or pensioner's income and remits them to HMRC.

Often seen in structured investment vehicle (SIV) documents requiring the security trustee to pay out creditors as their debts mature, rather than pay all creditors pari passu.

Step-by-step guide • Party A and Party B enter into an International Swaps and Derivatives Association (ISDA) Master Agreement, Schedule and agree with each other that they will document their pay as you go inflation swap (PAYG) under an ISDA confirmation. Assume the notional amount of the PAYG is USD 100,000,000 • Assume that the payment is due quarterly (it could be annually,

Notice of payer’s intention to pay less than the notified sum Reference: [insert appropriate reference to the contract and project] Date: [insert date] To: [insert recipient’s name] Payment due date: [insert the relevant due date of the payment, determined in accordance with

Construction analysis: The Technology and Construction Court (TCC) partially enforced an adjudicator’s decision concerning the validity of payment and pay less notices issued by the employer, under a contract containing JCT-style payment provisions. The court agreed that the payment notice was invalid for failing to explain the basis on which the sum due had been calculated—but held that this did not invalidate a subsequent pay less notice, which set out deductions against that sum due. Although the court rejected reliance on parallel Part 8 proceedings as a basis to resist enforcement, it nevertheless determined the underlying construction issues at the parties’ invitation, and gave judgment for a reduced sum. The case clarifies the content requirements of payment and pay less notices, the limits of Part 8 arguments in enforcement proceedings, when adjudication decisions may be set off against each other, and when the court might decline to enforce an adjudicator’s decision in the face of concerns about the claimant’s solvency.

Construction analysis: In October 2024, the Court of Session enforced an adjudicator's award against Ogilvie Construction Ltd. This award followed ‘Smash and Grab’ adjudication proceedings where ATG sought payment of an application for payment in the sum of circa £1.1m—the notified sum. Ogilvie argued that the award was unenforceable as the adjudicator had materially breached the rules of natural justice in reaching his decision. Ogilvie was unsuccessful in defending the enforcement action in court. Indeed, their defence was said to have been ‘frivolous’. Much was written about this judgement at the time. However, while it is true that the court will enforce Adjudicator's awards, contractors (or payer's) are likely to continue to challenge them, particularly when large sums of money are involved which a party feels is not due. Written by Erica Johnston, senior associate at Brodies LLP.

Are: • Tier 2 (General) sponsors required to increase a sponsored migrant’s salary (if relevant) every time that the appropriate rate for their role Appendix J is increased via a Statement of Changes to Immigration Rules, or • they only required to ensure that the most current appropriate rate is being paid prior to the issue of each Certificate of Sponsorship (CoS) or indefinite leave to remain (ILR) is applied for What are sponsors required to do as regards pay progression for persons initially issued a CoS as a new entrant? Pay progression in line with changes to the Immigration Rules There is nothing in the Immigration Rules (the Rules) or the Tiers 2 and 5 Sponsor Guidance (SG) which places an obligation upon Tier 2 sponsors to increase a sponsored migrant's salary after leave has been granted where there is a change to the minimum salary rate specified in the Immigration Rules and there are no changes to the migrant's role. The SG does make reference to changes

Law360: The insurance sector should quickly pay compensation to small companies affected by the anti-immigrant riots that have swept the country this month, the business secretary said on 12 August 2024.

This Practice Note examines the right of a worker (or, in relation to wages or salary paid in respect of a period of work that began before 6 April 2019, an employee) to receive an itemised pay statement under section 8(1) of the Employment Rights Act 1996 (ERA 1996) (see: Itemised pay statements below). It also considers: • whether online payslips comply with the requirements of ERA 1996, s 8 (see: Online payslips below) • what information should be included in a pay statement • references to employment tribunal, and • pay records In the case of tips, gratuities and service charges which an employer is paid, or over which it exercises control or significant influence (qualifying tips), the employer is required to maintain a record of all qualifying tips paid at their place of business, and their allocation and distribution between each worker, and workers have the right to request access to that record. For more information, see Practice Note: Allocating tips, gratuities and service charges to workers—Record-keeping requirements. Itemised pay statements A worker (or,

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Commercial analysis: The case concerned the issue as to whether a ‘pay first’ (also known as ‘pay to be paid’ or ‘pay as may be paid’) clause in a policy of charterers liability insurance (‘the Policy’) prevented third parties from bringing a claim against insurers. The claimant (‘Amlin’) issued the Policy to the charterers of a vessel, Bintan Mining Corporation (‘BMC’). Amlin sought a determination that the effect of the pay first clause was that no indemnity was payable under the Policy to the extent that BMC had not discharged the legal liability for which indemnity was sought. The case is a comprehensive analysis of problems that can arise in this area but the judge did observe the state of English law on this issue ‘is not particularly satisfactory’. Written by Lynne Counsell, barrister at Addington Chambers.