This week's case of the week, provided by DLA Piper, covers employees' rights on insolvency.
Claire Benson is managing associate and Caroline Jacobs and Chris McAvoy are associates at Addleshaw Goddard LLP. They round up the latest rulings.
The Court of Appeal has upheld a county court judgment that a term implied through custom and practice meant that an enhanced redundancy payment was conditional on the employee entering into a compromise agreement.
In Kraft Foods UK Ltd v Hastie EAT/0024/10, the EAT held that a contractual redundancy scheme that capped payments at the total amount of earnings that the employee would have received prior to retirement was justified as a proportionate means of preventing redundant employees from receiving a windfall.
The Employment Appeal Tribunal has held that a redundancy scheme that incorporated an age-related cap on payments was a proportionate means of achieving the legitimate aim of preventing employees from receiving a "windfall" and was not age discriminatory.
HR and legal information and guidance relating to redundancy payments.