Labour Research (May 2003)

Law Queries

Law Queries

I have been asked by a member working in a non-unionised workplace to find out the legal position regarding wage increases. She says that some people get increases while others do not. Although I don't believe there is a right to wage increases I would like to know what the law says.

There is no law that says workers have the right to an annual or any other form of regular pay increase. There may, however, be circumstances where it could be argued that by paying one employee less than the other the employer is indicating that they have less trust and confidence in the lower paid worker. This might give rise to a breach of contract claim.

There is one case where the Employment Appeal Tribunal held that the failure to pay one employee the same level of redundancy pay as was available to other employees was a breach of the implied term of mutual trust and confidence.

* More information: Transco v O'Brien [2002] IRLR 441


This information is copyright to the Labour Research Department (LRD) and may not be reproduced without the permission of the LRD.