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Severance pay terms upheld

This report relates to 1 case(s)

In Barry v Midland Bank plc the Court of Appeal has ruled that a redundancy pay scheme whereby severance pay is calculated on the basis of the employee's current pay at the date of termination does not contravene Article 119 of the EC Treaty even though it disadvantages part-time workers who previously worked full time by not taking into account any full-time service they may have had.

Mrs Barry was employed as a full-time clerk for 11 years, working 35 hours per week, until she took maternity leave.