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Contracts of employment: Dismissal to avoid contractual redundancy payment was unlawful

This report relates to 1 case(s)

Key points

  • There is an implied term in a contract of employment that, once an employer has determined that an employee will be dismissed by reason of redundancy, in circumstances where his or her dismissal for any other reason will defeat his or her right to enhanced contractual redundancy benefits, the employer may not lawfully dismiss him or her for any reason other than redundancy, except for good cause, the High Court holds in Jenvey v Australian Broadcasting Corporation [2002] IRLR 520.
  • Although not identical, an analogy can be drawn with the implied term that an employer will not, save for good cause, dismiss an employee where this would deprive the employee of his or her entitlement to income replacement insurance under long-term sickness schemes.