Permanent Health Insurance

In order to provide employees with protection from being deprived of the benefit of the PHI policy, the Courts have said that there is an implied term in the contract of employment that an employee will not be dismissed where they are incapable of work and where they are in receipt of, or likely to receive, benefits under a PHI policy (Aspden v Webbs Poultry (1996)). This means that the employee does not have to be receiving benefits under the PHI policy to be entitled to this protection. If it is likely the employee will in the future benefit under the PHI policy, they will be protected.

The Court in Aspden made it clear that the employee would not receive this protection if the employer had grounds to dismiss for gross misconduct. In subsequent cases, the permissible grounds for dismissal were extended to any reasonable or proper cause. This will extend to dismissals for misconduct and is likely to extend to dismissals in a genuine redundancy situation (subject to