Contracts of employment: Contractual entitlement to enhanced redundancy terms arose by custom and practice

Key points

• In Albion Automotive Ltd v Walker and others 21.6.2002, Court of Appeal, the Court of Appeal upholds an employment tribunal's decision that an employer who made enhanced redundancy payments according to an agreed policy for a number of years created a custom and practice from which the tribunal could infer that the employer and/or its successors intended to be contractually bound to make those payments.
• Therefore, in any further redundancy exercises, the remaining workforce also became contractually entitled to those enhanced terms rather than to statutory redundancy pay.