The court considered the calculation of redundancy payments.
Held: The employer’s appeal succeeded. Though the overtime was regularly worked, it was not a contractual obligation,and was not to be taken into account.
Lord Denning MR said: ‘it is a very great advantage to the men to have short working hours of 40 hours a week – on basic rates – with considerable overtime work – on overtime rates. It means a great increase in the take-home pay. Tt means also that they can take industrial action – by banning overtime – without thereby being in breach of their contracts of employment. Those conditions can carry however with them this disadvantage: when a man is made redundant, his redundancy payment is less because his normal working hours are only 40 hours. No doubt the union feel that the advantages outweigh the disadvantage. The men cannot have it both ways. Having committed themselves by written agreement to normal working hours of 40, they cannot go back on it.’
Lord Denning MR, Orr, Lawton LJJ
[1974] EWCA Civ 11, [1974] ITR 282, [1974] IRLR 155, [1974] ICR 420, [1975] KIR 149
Bailii
England and Wales
Employment
Updated: 11 December 2021; Ref: scu.262725