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JGM
JGM, Solicitor
Category: Employment Law
Satisfied Customers: 10099
Experience:  30 years experience as a solicitor.
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My contract of employment states that my employer will pay

Customer Question

My contract of employment states that my employer will pay 5% of my basic salary into a pension scheme. My employment started in 2005 but I have found that they have either been paying me nothing or significantly less than the 5%. How far back can I go to claim the shortfall. Can I go back to 2005?
Submitted: 1 year ago.
Category: Employment Law
Expert:  JGM replied 1 year ago.
When did you discover this?
Do your payslips show deductions to a pension scheme of 5%.?
Are other employees affected?
Customer: replied 1 year ago.
I discovered this in may 2015
My payslips show deductions of either nothing or significantly less than 5%
As far I am aware I am the only employee affected as no others receive this benefit
Expert:  JGM replied 1 year ago.
A failure to make pension contributions would lead to a breach of contract claim and accordingly you normally go back 6 years in England.
The Limitation Act 1980 sets out the limitation periods in civil cases. It provides for a a limitation period of six years for actions in respect of simple contracts from the date on which the cause of action accrued (section 5, Limitation Act 1980).
However section 36 provides that the time limit in section 5 does not apply to a claim for specific performance. As it could be argued that the obligation under contract to make pension contributions is a performance obligation you can argue that the time limit doesn't apply and that you can go back to the beginning.

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