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

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Brittany

I was very grateful for Redmans to treat my case with respect and discretion. At the time, I was very new to London and it was meaningful to have someone on my side and win the case for me. Without any doubt, I would definitely recommend Redmans Solicitors to anyone who is in need of it.

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Jake L

Chris is very professional and calm. Very attentive and patient, been a positive experience having Chris represent me, and would recommend him.

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Anonymous

Excellent service. It was a pleasure to work with Chris H, who is brilliant at what he does and very efficient. Their Senior Associate Rana T. is also very knowledgeable and resolves any queries speedily and efficiently. My issue could unfortunately not be resolved, but that was due to my employer and not the firm. Redmans however did all they could. I would definitely recommend them.

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Anonymous

Very pleasant and quick to deal with. Mnay thanks.

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Easy to get hold of. Quick.

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Owen J

Very helpful, efficient service.

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Anonymous

I am very lucky that I worked with Mr. Chris Hadrill and he managed my case very progressively with an analytical approach and trustfully. Of course with a very positive result. I strongly recommend Mr. Hadrill to any one seeking for a successful result from a highly qualified solicitor.

Posted 4 months ago

Kulbir S

Amazing, quick friendly service from Chris from the start and Caroline. They made me feel at ease during a difficult time, they understood and advised accordingly and I am really happy with the outcome of my case. Will always advise anyone who needs legal advice to contact Redmans, I’m so glad that I did and can confidently say I don’t think any other firm could have handled my case any better. Well done guys, wish you all the best and please keep doing what your doing, simply the best!

Posted 4 months ago

Mark A

Excellent service - rapid and “to the point” advice given to ensure meeting the target time frame

Posted 4 months ago

Anonymous

Chris Hadrill kept me sane during the negotiations with my employer. He was courteous professional and he cared about doing the best he could for me. I will use Redmans again if ever I need an employment solicitor. Excellent service.

Posted 4 months ago

Muhammad Z

Awesome services. Professionals at their best .

Posted 4 months ago

Anonymous

Thanks for the advice and for negotiating a good outcome. Good to have the support at a very stressful time

Posted 4 months ago

Chloe F

My solicitor at Redmans was very helpful and efficient. Really pleased with the smooth service.

Posted 4 months ago

Anonymous

Chris was absolutely excellent. Clear and concise, offering sound advice.

Posted 4 months ago

Tim O

Experienced and competent advisors

Posted 4 months ago

Rachel A

Quick and expert assistance. I would highly recommend Chris for any of your legal needs.

Posted 4 months ago

Joe S

I was very happy with the service provided by Chris and the team at Redmans Solicitors. I felt very comfortable discussing all matters with Chris and am very grateful for all the help and guidance I was given throughout the whole process. I would definitely recommend Redmans Solicitors to friends and family!

Posted 4 months ago

Anonymous

I had a very good experience working with Chris Hadrill during a difficult and emotional time. This held true from the moment I spoke to him on the phone, to the end of the process. Overall, he was attentive, professional and highly supportive. He provided sound advice and clarity. It was the reviews that led me to Redmans! I was very happy to know they were all true. I highly recommend working with Redmans Solicitors. Thank-you to the entire team!

Posted 5 months ago

Anonymous

Good service

Posted 5 months ago

Anonymous

Excellent professional service. Highly recommend.

Posted 5 months ago

Rob O

Very prompt response and I could not fault the service. My solicitor listened carefully to the details of my case and I felt very confident in the advice I was offered. All emails and work done on my behalf with my former employer was of the highest standard and Redmans helped take a lot of the stress out of the situation for me.

Posted 5 months ago