Tuesday, February 01, 2005

Incapacity Benefit

This is a "hot topic" at the moment given Tony Blair's expressed intention to clamp down on claimants.

By co-incidence the Employment Appeals Tribunal has very recently confirmed that Tribunals must deduct the entire amount of Incapacity Benefit received from the compensation they award to a successful Claimant.

Previous case law suggested that only 50% was to be deducted, but the EAT said that this would give the employee a "windfall" because Incapacity Benefit is not covered by the recoupment provisions which require benefits to be repaid to the Department of Works and Pensions out of any damages.

This is of course good news for employers facing a Tribunal claim but the best advice is of course to avoid ending up in the Tribunal in the first place.

There is a full report on this case at www.employmentappeals.gov.uk/uploads/UKEAT0438041712005/index.htm
Read more about the Government's plans at http://news.bbc.co.uk/1/hi/uk_politics/4224721.stm