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Contracts of employment: 'No compulsory redundancy' agreement merely aspirational

This report relates to 1 case(s)

Key points

In Kaur v MG Rover Group Ltd, the Court of Appeal holds:

  • The job security provision of a collective agreement, which included the words "There will be no compulsory redundancy", construed in the context of the collective agreement as a whole, was no more than a statement of collective aspiration, and was not apt to be incorporated into individual contracts of employment.
  • If the job security provision had been incorporated, then in the circumstances of this case, the express contractual term giving the employer the unfettered right to terminate employment with due notice for any reason, would not have prevailed over the term providing for no compulsory redundancy.