Enhanced redundancy pay implied by custom and practice?

Park Cakes Ltd v Shumba and others [2013] EWCA Civ 974 dealt with the question of whether an employer’s enhanced redundancy package had been implied into employees’ contracts of employment by custom and practice.

There has been much case law on this subject over the years and the general position is that an enhanced package cannot become implied unless the policy has at least been drawn to employees’ attention or has been followed without exception for a substantial period of time (Duke v Reliance Systems Ltd [1982] IRLR 347).

In this case, the employees had been able to show that, while their contracts of employment made no mention of the enhanced redundancy package, there had been a group policy of normally paying the package and it also formed part of the employer’s HR manual (and would have been available on request from HR). The tribunal initially dismissed their claims on the basis that the package had not been drawn to the employees’ attention. It was also not persuaded that the policy had been ‘followed without exception’ previously…

If you are registered and logged in to the site, click on the link below to read the rest of the Walker Morris briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from Walker Morris

View more briefings from Walker Morris

Analysis from The Lawyer

View more analysis from The Lawyer

Overview

Kings Court
12 King Street
Leeds
LS1 2HL
UK
http://www.walkermorris.co.uk

Turnover (£m): 42.50
No. of lawyers: 188