Contractual Redundancy Pay - Employee Handbooks
by Philip
A recent case in the Court of Appeal is a reminder to all employers that what is written in an employee handbook can create a binding legal commitment. The Employer in that case were subsequently committed to paying enhanced severance payments on redundancy. The learning point is if an employer does wish to state anything about redundancy payments in an employee handbook to make sure that no commitment is made and that the level of redundancy payment will be determined at each individual redundancy exercise. The case does beg the question, why make any reference to redundancy in an employee handbook?
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