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Chris Hadrill, a specialist employment solicitor at Redmans, answers the question:

“In what situations might I have a right to receive an enhanced redundancy payment?”

A right to receive an enhanced redundancy payment is contractual in nature – whether you will be entitled to an enhanced redundancy payment will therefore depend on whether:

  1. You have an express contractual right to receive an enhanced redundancy payment; or
  2. You have an implied contractual right to receive an enhanced redundancy payment

When might you have an express contractual right to receive an enhanced redundancy payment?

Some employees have an express contractual entitlement to enhanced redundancy pay. This is generally in the following situations:

  1. If you have a right to such written into your contract of employment;
  2. If you have a right to such incorporated into your employer’s policies (check the redundancy policy, staff handbook, and any other policy that may apply); and/or
  3. If your employer has entered into a collective agreement containing enhanced redundancy terms (whether on a business-wide or industry-wide basis)

This may be because their employer has entered a business or industry-wide collective agreement containing enhanced redundancy payment terms, which has been incorporated by reference into their employment contracts. Others may have been supplied with contractual documentation (either at the start of or during their employment

When might you have an implied contractual right to receive an enhanced redundancy payment?

You may also have a right to an enhanced redundancy payment implied into your contract of employment: this will generally apply if your employer has consistently followed an established practice of making enhanced redundancy payments – by paying such payments in the past an employer may create an expectation that it will do so in the future.

In order to show that a right to an enhanced redundancy payment is a term of your contract of employment by virtue of your employer’s custom and practice you must generally show that the terms are:
  • Reasonable, notorious and certain;
  • Fair (not arbitrary or capricious); and
  • Generally established (well known) and clear cut

There are some further conditions that you’ll need to meet in order to show an implied right to an enhanced redundancy payment and we’ll cover these in a more in-depth fashion in a future article

Some other things to think about

Some employer will require their employees to sign a settlement agreement in order to gain an entitlement to an enhanced redundancy practice: this means that the employee will have to generally sign away their rights to bring any claims against their (former) employer in order to receive the enhanced payment.

How you can check whether you have a right to an enhanced redundancy payment – some hints and tips

If you’re being made redundant then you should check the following (among other things) in order to determine whether you have a contractual right to an enhanced redundancy payment:

  1. Check your contract of employment and employer’s policies to see whether you have an express right to receive an enhanced redundancy payment
  2. Check whether you have a right to an enhanced redundancy payment in any collective agreement that your employer has agreed to
  3. Check, as best as you can, the custom and practice of your employer in whether it has paid out enhanced redundancy payments in the past and, if so, how consistently it has done so, whether it has used particular calculations to calculate enhanced redundancies, and so on

Chris Hadrill, a specialist employment solicitor at Redmans, commented: “Whether you have a right to an enhanced redundancy payment can be a tricky and technical legal question – it’s recommended that you do your research properly and, further, get some expert legal advice on your situation.”

About

Redmans Employment Team deal with employment matters for both employers and employees, including drafting employment contracts and policies, advising employers and employees on compromise agreements, handling day-to-day HR issues, advising on restructures, and handling Employment Tribunal cases for both employers and employees

Call 020 3397 3603 to speak to one of the members of our employment team or email us on enquiries@redmans.co.uk.

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Testimonials

4.52 Average

21 Reviews

Redman's provided excellent legal employment advice for me during a difficult time in my employment. Chris was my lawyer, super efficient, quick, reliable and clearly very experienced in the matter. Could not ask for a better law firm to deal with your query if you are in need of some help. Would definitely use them again in the future. Highly recommending Chris.

Posted 3 weeks ago

Steven

Chris Hadrill was very professional and responsive. I would highly recommend him

Posted 4 weeks ago

Dinah

Very Efficient, with very quick email reply’s. I had a matter that needed resolving within a very short space of time and Redmans Solicitors were great with dealing with my matter quickly.

Posted 4 weeks ago

Ankar

At Redmans the solicitor that was dealing with me was Chris. He dealt with my situation smoothly with clear guidance and explanation

Posted 1 month ago

Anonymous

Clear, concise advice and guidance delivered by an experienced and very capable solicitor, within the timelines required

Posted 1 month ago

Anonymous

Very efficient service. I never had to wIt for more than a day for a reply to any of my queries and the matter was dealt with swiftly.

Posted 1 month ago

Anonymous

Very timely, thorough and helpful advice. Friendly and considerate of the needs of the client

Posted 1 month ago

Anonymous

Very prompt and attention to detail. Thank you for the service

Posted 1 month ago

Chris

Couldn’t be happier with how Redmans successfully handled our seemingly tricky case. By being clear and detailed every step of the way, with the utmost professionalism and courtesy, they made it an informative and eye-opening process, taking the stress out of the situation and ultimately delivered what you would want from such a service. I fully appreciate everything they have done, and if I am ever in need of such services in the future, they will be the first number I contact. Excellent.

Posted 1 month ago

Anonymous

Excellent work delivered with great quality

Posted 1 month ago

Dominic

Chris Hadrill was a great help both in terms of his advice and his expertise. He explained my options to me clearly and concisely enabling me to quickly make the right decision for me in the circumstance. I would not hesitate to recommend Chris or Redmans to friends or colleagues, and would certainly make Redmans my first port of call should I require a similar service in the future.

Posted 1 month ago

Kurt

Redmans gave excellent advice and helped me understand everything in clear concepts. Thank you!

Posted 1 month ago

Anonymous

Resolved my issues

Posted 1 month ago

Keith

Quick fast professional service.

Posted 1 month ago

Michael

"Prompt, efficient and practical advice that resulted in me getting some additional money tax free."

Posted 1 month ago

Anonymous

Patient and thorough advice given to me around my Settlement Agreement

Posted 2 months ago

Anonymous

"Excellent service, getting back to you promptly giving you very good advice."

Posted 2 months ago

Anonymous

I found Chris Hadrill to be an excellent help, he is very knowledgeable and gives good ,concise ,strategic advice .He makes himself readily accessible when you need him.I would personally highly recommend him.

Posted 2 months ago

Christine

Professional, efficient and reliable service provided. I strongly recommend them and I would use this service again.

Posted 2 months ago