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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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Testimonials

4.72 Average

89 Reviews

Anonymous

I requested Redmans services on a redundancy case. Both Chris and Rana were great, thoughtful, very professional and responded quickly. They were very clear throughout the entire process, regarding the process and my options and I couldn't feel I had better legal advice for my case. Overall excellent service and I would certainly recommend and use their services again.

Posted 1 day ago

Anonymous

Responsive, patient, thorough and personable - an excellent service.

Posted 4 days ago

Anonymous

The team at Redmans, Chris Hadrill and Sacha Barrett were always very helpful and had expert knowledge to assist me during my employment law matter, I would not hesitate to recommend them to all!

Posted 4 days ago

Arun T

Chris was punctual, attentive and accurate. He answered my questions with clarity and avoided dubiosity. I would recommend him to anyone seeking legal advice within his remit.

Posted 5 days ago

Yulian Z

Great service

Posted 5 days ago

Anonymous

Excellent, professional service and a speedy resolution. Many thanks

Posted 5 days ago

Taral P

Sacha and Chris were both very helpful in closing out my matter. Sacha was very clear in helping me understanding the documents I needed reviewing, providing a professional service throughout.

Posted 5 days ago

Anonymous

Really pleased with the swift and professional service from Redmans. They provided very clear advice and helped conclude my matter with the minimum of stress or delay.

Posted 5 days ago

Matthew L

Redmans were very quick to respond to my initial enquiry, and provided me with a very effective and efficient service, generating a most satisfactory outcome. I would definitely use them again if the need arose.

Posted 6 days ago

Anonymous

First rate service. Warm and friendly whilst exceptionally efficient at the same time. I would highly recommend them.

Posted 6 days ago

Anonymous

Professional and helpful. Thorough and supportive.

Posted 6 days ago

Richard A

Excellent service, prompt replies, great advice

Posted 6 days ago

Anonymous

Very professional services

Posted 6 days ago

Margaret

Redmans Solicitors took a lot of the worry away and were very thoughtful and meticulous in their dealings with my case , thank you very mush , great service and a great job

Posted 1 month ago

Mark B

Prompt efficient service. Hourly, and part thereof, billing got a bit stressful at times - as opposed to flat fee - made me think twice about sending an email or making a quick call when I had a query because it would have eaten up minutes from my budget. But happy with the legal service I received overall and would recommend.

Posted 1 month ago

Anonymous

Chris Hadrill has provided a truly wonderful service and was willing to lend his support and expertise at a time when other solicitors, only wanted to discuss their fees! A clear thinking and down to earth professional, Chris can be trusted to listen carefully to your matter, cut through the fog, and advise you on the best (and most realistic) way forward, saving you time, money and heartache. It will be helpful if you first get your ducks in a row in terms of documents / evidence etc. and then contact Chris, (that’s what we did) as this will help your matter to be dealt with faster. The more organised and together you are the more successful you will be. You'll be fine with Chris, I highly recommend him. Good luck!

Posted 1 month ago

Richard v

Excellent Service

Posted 1 month ago

Anonymous

Very happy from service received. Highly recommend

Posted 1 month ago

Colin W

Very professional and thorough. Sachs who dealt with the bulk of my case was excellent Thank you. .

Posted 1 month ago

Anonymous

I was generally impressed with the fast turn around, efficiency, responsiveness, and consideration of circumstances. I needed a couple of areas of advice quickly and with Redmans help was able to get to a conclusion quickly and with minimum stress. They were friendly and professional throughout - I'd use them again.

Posted 1 month ago

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 2 months ago