Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Employee definition

What does Employee mean? Describes an individual engaged under a contract of employment (a contract of service) who enjoys the fullest employment law protections, such as unfair dismissal, redundancy pay, statutory notice and much family leave. In practice, employee status is determined by legislation read with case law on the reality of the relationship, typically examining personal service (no unfettered substitution right), employer control, and mutuality of obligation, alongside integration and other indicia. In England & Wales and Scotland, the Employment Rights Act 1996 defines an employee as an individual who has entered into or works under (or, where employment has ceased,...

Changing occupational pension terms via employment contracts: extrinsic contract doctrine, section 67 restrictions, case law and practical guidance for employers and trustees

Published by a LexisNexis Pensions expert

Practice notes

Employees’ pensions rights under an occupational pension scheme can be categorised as:

entitlements that flow from the trusts governing the particular, relevant pension scheme
Contractual provisions contained in employees’ contracts of employment, whether express or implied

For more detail, see Practice Note: Pensions and the employment contract.

Understanding both sources matters when changes to future pension entitlements are considered. Appreciating this twin character is crucial, particularly where adjustments to staff members’ prospective pension benefits are on the table. As a rule, altering employees’ pension provisions within an occupational scheme requires use of the scheme’s power of amendment (and the sponsoring employer may need to consult the workforce about the proposals). Nevertheless, because pension rights sit in both spheres, employers will frequently also look to secure employees’ explicit agreement to the changes (typically after any consultation has closed) to reduce the risk of a successful claim by employees under their employment contracts or other applicable contractual materials (eg employee handbooks or collective agreements). For guidance on employer consultation, see Practice Note: Pension consultation requirements...

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Wyn Derbyshire

gunnercooke LLP

Wyn is a partner at gunnercooke LLP and specialises in pensions, trust and employment law in all industry sectors, dealing with the transactional, advisory and documentation aspects.He also has wide experience of the pensions implications of heavyweight corporate transactions and flotations, the issues arising from the establishment and merger of pension schemes, and sex equalisation and other discrimination issues in respect of benefits provided by pension schemes. In addition, he provides advice to pension scheme trustees generally.Recent transactions include advising Amcor on pension matters relating to the acquisition of Alcan business and the acquisition of Northern Foods PLC by Boparan Holdings.He is a co-author (with Stephen Hardy and Stephen Maffey) of TUPE: Law and Practice, published by Spiramus Press (now in its 4th edition), and co-author (with Stephen Hardy and David Wicks) of Money & Work, published by Spiramus Press in August 2007. He has also...

Web page updated on 21/05/2026

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