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Contracts of employment: "No redundancy" term was incorporated

This report relates to 1 case(s)

Key points

In Kaur v MG Rover Group Ltd the High Court holds:

  • The job security provision of a collective agreement (that there would be no compulsory redundancy), construed in the context of the collective agreement as a whole, was not merely a statement of aspiration but was the assurance behind provisions in the agreement requiring flexible working and was apt to be incorporated into individual contracts of employment.
  • The effect was that the express contractual term giving the employer the right to terminate employment with due notice had to be read subject to the agreement that it would not so terminate where the reason was compulsory redundancy.
  • The Court granted a declaration to the effect that the employee had a contractual right not to be made compulsorily redundant.