Want to talk to an expert employment law solicitor?

You'll receive a callback from a specialist within an hour

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. Redmans have offices in Richmond, Chiswick, Hammersmith, Fulham, Kingston, Wimbledon, Ealing, Kings Cross and Marylebone (meetings strictly by appointment only).

Want to talk to an expert employment law solicitor?

You'll receive a callback from a specialist within an hour

Share →

Our awards

Request a callback

Your name

Your email

Your telephone number

Contact us

Please feel free to discuss your own position and concerns. Contact your nearest office on:

T: 020 3397 3603
E: enquiries@redmans.co.uk
W: www.redmans.co.uk

Testimonials

4.68 Average

69 Reviews

Anonymous

The guidance and assistance I recently received when using Redman's was fantastic. Caroline & Chris were both very informative and understanding walking me through each step. Thank you.

Posted 1 day ago

Nicola W

Fantastic service, very quick and efficient. Thank you

Posted 1 day ago

Anonymous

Excellent professional service.

Posted 1 day ago

Anonymous

As with All solicitors advice without consequence but understood and communicated my legal position

Posted 1 week ago

Anonymous

Prompt, professional and excellent service.

Posted 1 week ago

Dominic C

Excellent service, prompt and helpful

Posted 2 weeks ago

Anonymous

I found Redman’s to be very efficient and got me the best deal available in the short time scale that was available.

Posted 2 weeks ago

Victor L

Very professional. Provided excellent advice on my Settlement agreement.

Posted 2 weeks ago

Anonymous

Professional from start to finish.

Posted 2 weeks ago

Oliver W

Excellent service provided by Redmans, will certainly consider using again.

Posted 2 weeks ago

Melanie H

Very professional and extremely personable service. Thank you very much.

Posted 1 month ago

Anonymous

I found Chris to be very approachable and easy to speak with about complex matters. He took action quickly and his updates to me, as his client, were prompt. I would recommend Chris and the team at Redmans without hesitation.

Posted 1 month ago

Anonymous

Good advice

Posted 1 month ago

Anonymous

Overall happy with the service provided by Chris and Rana.

Posted 1 month ago

Anonymous

Chris and Rana provide a great service, very informed, diligent and care about your result, would recommend Redmans

Posted 1 month ago

David W

A speedy efficient friendly service, I would definitely recommend Redmans Solicitors for processing Settlement Agreements.

Posted 1 month ago

Anonymous

Both Rana and Chris were fantastic. From the first phone call I was confident my matter was in good hands. I was not disappointed. I would highly recommend Redmans. Thank you again for all of your support and advice.

Posted 1 month ago

Federico S

Great advices and communication. Through Redmana I obtained match more than what I thought. Highly recommended

Posted 1 month ago

Tom G

A good and efficient service with the required legal advice provided for a settlement agreement.

Posted 1 month ago

Francis T

The solicitor I used was Chris Hadrill, who I found extremely professional and I felt that he made me feel at ease, considering the subject matter he was assisting me with.

Posted 1 month ago

Anonymous

Chris provided excellent assistance with the negotiation of my settlement agreement. From start to finish, I was consitently updated and advised on the best course of action to take. I would highly recommend Chris and Redmans Solicitors.

Posted 1 month ago