Employment law question - withdrawal of a benefit

[Gareth1974]

I've received a taxable "benefit in kind" (free train travel) for around 20 years from my employer. I was recently advised that following a job change (within the company) 8 years ago, I should have no longer received this benefit, but this wasn't identified at the time, and the benefit was provided continuously, until now, when the company have notified me that they intend to withdraw it.

I'm trying to establish (and haven't managed to find the answer) if I have reasonable grounds to appeal against this. It seems that if they wanted to reduce my salary, I would have to consent to it, but I can't really find anything about the withdrawal of a benefit (with an annual value of around £1700).

Anyone with any knowledge of employment law out there who can help?

[dibblecorse]

The rights you have will be dependent on the Employment Contract you have, so the first thing you need is to get a copy of that and look for a Variation Clause or similar whereby they have rights to amend / tweak your terms, I have in mine, means they can change health care levels, pension contributions, add / remove fringe benefits etc.

Have a little read of:

https://www.citizensadvice.org.uk/work/rights-at-w...

But without your contract we would all be just guessing what rights you do / don't have.

[CharlesElliott]

Agree with above - you will need to read your contract.

Often these sort of benefits are non-contractual - either not mentioned at all, or a reference to 'you may receive benefts such as those detailed in the employee handbook which the company can vary at any time, at their discretion'.

[basherX]

CharlesElliott said:

Agree with above - you will need to read your contract.

Often these sort of benefits are non-contractual - either not mentioned at all, or a reference to 'you may receive benefts such as those detailed in the employee handbook which the company can vary at any time, at their discretion'.

Some staff feedback we once received when removing a longstanding benefit: "the more of these discretionary benefits I lose, the fewer discretionary hours I feel inclined to work."

[dibblecorse]

basherX said:

Some staff feedback we once received when removing a longstanding benefit: "the more of these discretionary benefits I lose, the fewer discretionary hours I feel inclined to work."

Which is always bluff and bluster ..... and if those people move on, they get backfilled by more motivated ones ....

[PSRG]

dibblecorse said:

basherX said:

Some staff feedback we once received when removing a longstanding benefit: "the more of these discretionary benefits I lose, the fewer discretionary hours I feel inclined to work."

Which is always bluff and bluster ..... and if those people move on, they get backfilled by more motivated ones ....

Usually the reverse surely…? Those motivated enough will move on to an employer that values and rewards them leaving the less motivated to fill the gap, resulting in a slow spiral to mediocrity and below

[dibblecorse]

PSRG said:

Usually the reverse surely…? Those motivated enough will move on to an employer that values and rewards them leaving the less motivated to fill the gap, resulting in a slow spiral to mediocrity and below

Not at all, my experience is that those that whinge about these things are the low to average performers at best, whereas the high performers are enjoying / succeeding enough and understand that at times these tweaks / changes are required to move the business forward.

The backfills you then hire are none the wiser, the see the opportunity and the package at point of entry as being what it is, and these changes are usually at the fringes rather then the core benefits.

[kestral]

Gareth1974 said:

I've received a taxable "benefit in kind" (free train travel) for around 20 years from my employer. I was recently advised that following a job change (within the company) 8 years ago, I should have no longer received this benefit, but this wasn't identified at the time, and the benefit was provided continuously, until now, when the company have notified me that they intend to withdraw it.

I'm trying to establish (and haven't managed to find the answer) if I have reasonable grounds to appeal against this. It seems that if they wanted to reduce my salary, I would have to consent to it, but I can't really find anything about the withdrawal of a benefit (with an annual value of around £1700).

Anyone with any knowledge of employment law out there who can help?

If you are or were a railway worker try the UK Rail forum. But you will need to tell them which companies were involved with the dates. TOC receive free travel tax free, but other companies have to pay tax on their free travel. If you changed job that does not entitle you to free travel then you have lots it now.

[Glosphil]

Isn't there a clause in employment law that states if a benefit has been continuous for a period of time (3? or 5? years) it becomes part of the employment contract & requires negotiation to be removed?
A number of years ago I had a company car for 6 years that included fuel for private use (for which I was taxed). The company wanted me to start paying for my 'private' fuel. A employment law solicitor argued that despite it not being mentioned in my terms of employment it had been received for a period of time that made it part of the terms and wrote a letter to the company on my behalf. The company allowed me to keep the benefit provided I refrained from discussing it with other employees.

[ruggedscotty]

Glosphil said:

Isn't there a clause in employment law that states if a benefit has been continuous for a period of time (3? or 5? years) it becomes part of the employment contract & requires negotiation to be removed?
A number of years ago I had a company car for 6 years that included fuel for private use (for which I was taxed). The company wanted me to start paying for my 'private' fuel. A employment law solicitor argued that despite it not being mentioned in my terms of employment it had been received for a period of time that made it part of the terms and wrote a letter to the company on my behalf. The company allowed me to keep the benefit provided I refrained from discussing it with other employees.

bingo - custom and practice....

https://uk.practicallaw.thomsonreuters.com/4-200-3...

A practice or benefit will become an implied term of the employment contract if it is regularly adopted and is customary in a particular trade or locality or at a particular workplace.
For the custom or practice to amount to an implied term of the employment contract, it must be "reasonable, certain and notorious" (Bond and another v CAV Ltd [1983] IRLR 360) and followed "because there is a sense of legal obligation to do so" (Solectron Scotland Ltd v Roper [2004] IRLR 40).

[Dark Star]

I would think the travel benefit would not form part of your original contract as they have mistakenly paid it for the past 8 years when you changed job roles within the company.
It sounds as if the travel benefit was role specific.
When you first started the role that included the travel benefit you would have been told it was part of your job benefits which could imply that you knew once your job role changed that you were no longer eligible for that benefit but as they had an oversight and kept paying it and you kept taking it they could if they wanted look to recover the money that has been over payed for 8 years.

If you were still in the role that included the benefit then you would have a case to keep receiving it.

I would look at your contract of employment to see if it is mentioned that (rail) travel expenses are included?
If they are you have strong grounds to appeal.
However if there is no mention of travel expenses you could be chased for the overpayment.

Edited by Dark Star on Saturday 31st July 05:51

Edited by Dark Star on Saturday 31st July 08:38

[BertBert]

What rationale has been given that the benefit should have ceased when your role changed?

Is it a known thing that the previous role had the benefit and the new one doesn't?

[mr mac i]

OP, guessing you've not quite been on the railway long enough to have 'protected travel'?

Are you in a union?
If so start with your rep, or the unions free legal advice because they will be aware of the various nuances due to privatisation and the franchise system....

As an aside to the person who said 'protected travel' isn't taxed, it definitely is.

[Jasandjules]

Gareth1974 said:

I've received a taxable "benefit in kind" (free train travel) for around 20 years from my employer. I was recently advised that following a job change (within the company) 8 years ago, I should have no longer received this benefit, but this wasn't identified at the time, and the benefit was provided continuously, until now, when the company have notified me that they intend to withdraw it.

I'm trying to establish (and haven't managed to find the answer) if I have reasonable grounds to appeal against this. It seems that if they wanted to reduce my salary, I would have to consent to it, but I can't really find anything about the withdrawal of a benefit (with an annual value of around £1700).

Anyone with any knowledge of employment law out there who can help?

If they have been providing it for 20 years it is arguable that they are obliged to continue to do so and that in fact it has been provided for so long that it now is included in part of your contract of employment....

(the above is assuming it is not already cited as a term of your contract)