Warning to employers who regularly enhance redundancy payments
By Jayne Flint
The Employment Appeal Tribunal (EAT) in Peacock Stores v Peregrine has confirmed that where an employer consistently makes enhanced redundancy payments, such action could give rise to an implied contractual entitlement.
Under the Employment Rights Act 1996, a statutory redundancy payment is calculated using an employee’s age, week’s pay (capped at the current limit of £450 but due to increase to £464 on 6 April 2014) and length of service (up to a maximum of 20 years’ service).
From 1996 to 2002, Peacock Stores made redundancy payments in excess of the statutory entitlement. In particular, it did not cap the amount of a week’s pay nor the number of years’ service to be applied. This meant that an employee with, for example, 30 years’ service was credited with 10 years’ more service than the statutory scheme allows for…
Click on the link below to read the rest of the Shoosmiths briefing.
Sign in or Register to continue reading this article
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
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
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.
News from Shoosmiths
News from The Lawyer
Briefings from Shoosmiths
The SRA’s new training regime for all aspirant and qualified solicitors is expected to come into force from November 2016.
On 26 January 2015, two individuals entered pleas of not guilty to criminal cartel charges brought under the Enterprise Act 2002.
Analysis from The Lawyer
Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future
There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…