Enhanced redundancy payments via custom and practice
by Philip
For those of you out there wrestling with the issue as to whether an enhanced redundancy payment scheme has become contractual by custom and practice, there is a useful review of the relevant cases here
In summary if a scheme has been regularly used down the years, at different times, and has been communicated then it is likely to become incorporated into the employees’ contracts by custom and practice.
For those of you practising the black arts of personnel practice, it is probably a good idea to vary the means of calculating any enhanced redundancy package for each redundancy exercise this will then break any regular pattern of payment.
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