An employee has been receiving an additional payment from 2003 to date for additional duties/responsibilities. We have withdrawn this from 31st December 2011 as it does not meet Policy/Procedures. The question is: may an allowance be withdrawn without any negotiations/discussions?

The first question the employer should ask is whether this additional payment forms part of the employee’s terms and conditions of employment. If it does, and subject to what is said in the relevant Policy/Procedures and/or contractual documentation relating to this additional payment (and why it is being withdrawn), the employer should have followed a procedure to legally vary the employee’s terms and conditions.

We assume that there is no express provision in the employee’s contract of employment or related documentation governing this additional payment. However, the additional payment may still form part of the employee’s contract as an implied term through custom and practice. To