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Redundancy Payment Precedents?

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monkeycide | 08:14 Fri 02nd Sep 2005 | Jobs & Education
4 Answers
If a company has made several sets of redundancies over the past 3-4 years using a specific calculation to determine redunancy pay (ie substantially over the statutory) - does that same company have an obligation to pay future redundancies at the same high level?

My current employer recently bought "us" from a big name company, who paid a decent redundancy package. They agreed to keep the redundancy terms previously set for the 12 months following the takeover. These 12 months are very nearly up and surprise, surprise... theres talk of profit warnings, "restructuring" etc.

Its not just the money, its also the fact that the folks that stayed on had the opportunity to leave under voluntary redundancy at the high rate, but chose to see it through and try to get the company back on track.

Any ideas?
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The company can change the rules at will. They only have to pay the statutory minimum, anything else is up to them.

It sounds like your company might have set a precedent for itself by paying enhanced redundancy in the past. If the company has made all employees aware of the enhanced redundany terms (e.g. not just a select few who would be receiving it) and if the enhanced redundancy policy has been consistently followed by the company for a substantial period of time, then future redundant employees might have a contractual right to the enhanced pay.  The Employment Appeal Tribunal and the Court of Appeal have upheld the claims of employees made redundant in these situations.  You really do need to get proper legal advice from an employment lawyer, though the Citizens Advice Buerau is always a good place to start.

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Obviously Miss Zippys answer sounds more appealling!!

Quite a few people here will be losing A LOT more than me, so maybe I could band a group together and try to push this further with the correct help.

Thanks for both answers.

When my (ex) company started making redundancies the payoffs were extremely generous. Unfortunately, things didn't get better and more followed almost annually. Each time the terms were a little less good and each one was accompanied with the condition that if we didn't take this, there was no guarantee the next would be as attractive. So in the end, I took one. :)

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