The parties disputed whether there had arisen an implied term in the company’s employment contracts that enhanced redundancy would be paid.
Held: Peter Gibson LJ adopted a multi-factorial approach as to the relevant factors to be taken into account when considering whether a unilateral management policy had acquired contractual status. Those factors included: ”(a) whether the policy was drawn to the attention of employees; (b) whether it was followed without exception for a substantial period; (c) the number of occasions on which it was followed; (d) whether payments were made automatically; (e) whether the nature of communication of the policy supported the inference that the employers intended to be contractually bound; (f) whether the policy was adopted by agreement; (g) whether employees had a reasonable expectation that the enhanced payment would be made; (h) whether terms were incorporated in a written agreement; (i) whether the terms were consistently applied.’
Judges:
Peter Gibson, Potter LJJ, Sir Murray Stuart-Smith
Citations:
[2002] EWCA Civ 946
Links:
Jurisdiction:
England and Wales
Citing:
Appeal from – Albion Automotive Ltd v Walker and 21 others EAT 12-Oct-2001
The employees claimed enhanced redundancy payments. The employers said no contractual obligation existed to make any such payments. The employees said that all previous redundancies had been under such terms, and that it had become a term of their . .
Cited by:
Cited – Garratt v Mirror Group Newspapers Ltd CA 13-Apr-2011
The claimant had been employed by the defendant. They made him redundant. He claimed and enhanced payment saying that his emloyment was covered by a collective agreement, but when he refused to sign a compromise agreement, the company paid him only . .
Cited – Allen and Others v TRW Systems Ltd EAT 17-Jan-2013
allen_trwEAT2013
EAT CONTRACT OF EMPLOYMENT – Incorporation into contract
Redundancy policy containing provision for enhanced redundancy payments – formally agreed with works Advisory Council – promise added to Employee . .
Lists of cited by and citing cases may be incomplete.
Employment
Updated: 21 August 2022; Ref: scu.420969