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Contracts of employment: No implied entitlement to enhanced redundancy payment

This report relates to 1 case(s)

An employer who made automatic payments of enhanced redundancy compensation to dismissed employees for over 20 years, but who reserved the scale of those payments for its management manual which was not formally distributed to the workforce, did not commit itself either expressly, or impliedly by custom and practice, to any contractual obligation to make such payments, the EAT holds in Pellowe v Pendragon plc 30.6.99 EAT 804/98. So, an employee made redundant by the transferee of the employer's undertaking was entitled only to the statutory redundancy pay that she in fact received.