Veale Wasbrough Vizards

UK 200 2013 position: 98

Enhanced redundancy terms implied into the contract of employment

By Allison Cook

Was a consistent practice of paying enhanced redundancy payments capable of being implied into individual contracts of employment, meaning that paying the statutory minimum alone amounted to a breach of contract by the employer?

In the case of Peacock Stores v Peregrine & Others, the Employment Appeal Tribunal (EAT) said yes.

For a custom and practice to become a contractual term, it must be reasonable, widely known and certain. It must also be followed because the parties feel a legal obligation to do so…

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