Redundancy pay and custom and practice

Redundancy pay and custom and practice

The Appeal Tribunal this week reminded us all that Custom and Practice as a way of forming contractual terms is very much alive and well.
 
In this case the employer had consistently paid the statutory redundancy, but without a cap on a weeks pay. They then carried out a redundancy where they reverted to the statutory with a cap. The court ruled that where there was evidence that a practice was consistently applied, and well understood, and there was no evidence to the contrary, then this was a term of the contract.
 
It helped in this case that the ex HR Manager gave evidence to say she thought it was “definitely custom and practice”.
 
Read the full case at the following link:
http://www.bailii.org/uk/cases/UKEAT/2014/0315_13_2503.html

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