Mr C Rumford Mrs S Rumford v City of York Council — 2023

Mr and Mrs Rumford retired from City of York Council on 30 September 2022. The tribunal found that the Council had historically paid back pay to leavers on request when national local government pay awards were agreed after the relevant backdated effective date, and that this practice had continued for many years. A corporate management team decision on 16 March 2022 changed the approach for the 2021 award and future awards, but the tribunal found that the change had not been directly communicated to the claimants before they retired.

The tribunal held that the claimants' contracts provided for salary to be reviewed in accordance with the NJC national pay bargaining arrangements, and that the November 2022 agreement increasing pay rates from 1 April 2022 applied to work done while both claimants were still employed. Applying s.13 and s.27 ERA 1996, and relying on Robertson v Blackstone Franks Investment Management Ltd, the tribunal concluded that the later payment date did not stop the sums from being wages properly payable in connection with their employment.

In the alternative, the tribunal found an implied contractual term arising from custom and practice that arrears of backdated pay would be paid to employees who had left before agreement if they requested payment. Applying the Park Cakes v Shumba approach, it relied on the long-standing practice, the shared understanding within HR and among employees, and the absence of any prior exercise of discretion to pay leavers. The tribunal therefore found unauthorised deductions from wages and ordered City of York Council to pay Mr Rumford £577.50 gross and Mrs Rumford £641.66 gross.