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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