Want to talk to an expert employment law solicitor?

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

In the case of Mrs S Ugradar v Lancashire Care NHS Foundation Trust UKEAT/0301/18/BA the Employment Appeal Tribunal (“EAT”) considered whether the Employment Tribunal had been correct when they refused to pay a Claimant a statutory redundancy payment in addition to her contractual redundancy payment.

The facts in Ugradar v Lancashire Care NHS Foundation Trust

Mrs Ugradar (the ‘Claimant’) was employed on ‘Agenda for change’ terms and conditions by Lancashire Care NHS Foundation Trust (the Respondent’).  Section 16 of those terms and conditions provided for a contractual redundancy payment.  Whilst the definition of redundancy and the conditions of qualification broadly mirrored the statutory scheme set out in Part 11 of the Employment Rights Act 1996, it allowed for a payment of one month’s pay for each complete year of service.

There was an express provision in the contract governing the relationship between the contractual payment and the statutory payment.  It said: ‘NHS contractual redundancy is an enhancement to an employee’s statutory redundancy entitlement; the statutory payment being offset against any contractual payment.’

The Claimant’s post at the Respondent’s disappeared in a reorganisation.  The Respondent put forward various positions which they felt constituted suitable alternative employment, but all of them were rejected by the Claimant as not, in fact, being suitable.  Her employment was terminated by the Respondent and she did not receive a redundancy payment.  She brought a claim in the Employment Tribunal (“ET”) for both the contractual redundancy payment and the statutory redundancy payment.

The decision of the Employment Tribunal

The Claimant was entitled to an enhanced contractual redundancy payment of £43,949.04 under the provisions of her contract of employment.

The ET found that the Claimant was entitled to the payment as she had reasonably refused the Respondent’s offer of alternative employment, which was not suitable, but capped her award at £25,000 by virtue of the statutory cap which applies to contractual claims being heard in the ET.  It declined to order the Respondent to pay the Claimant a statutory redundancy payment of £5,868, relying on the clause in the Claimant’s contract of employment which stated that the statutory payment was to be offset against the enhanced payment.

The Claimant appealed to the Employment Appeal Tribunal.

The decision of the Employment Appeal Tribunal

At the EAT, the Claimant relied on the case Eden v Skills and Works Solutions Limited to argue that the statutory cap did not apply to a statutory redundancy payment.

The Respondent attempted to argue that as the Claimant had already pursued a cause of action and obtained a judgment, she was precluded from bringing an additional claim in respect of the same cause of action and relied on the case Fraser v HLMAD Limited.  It argued that the full contractual payment, which included the statutory element, was one cause of action, effectively one claim for a redundancy payment which included two elements.

The EAT agreed with the Claimant and said that she was entitled to be paid the statutory redundancy payment, in addition to the contractual payment which was capped at £25,000. The held that the case Fraser v HLMAD Limited did not apply in this case as there was, in fact, two separate causes of action, not just one.  The Claimant was entitled to the statutory payment, even in her contract of employment had attempted to restrict her rights to that payment.

The Claimant’s contractual payment was £43,949.04 and the Respondent was entitled to set off against that figure the amount of £5,868.00 which was the statutory payment. Therefore, the actual amount the Claimant was entitled to was £38,071.04.  The statutory cap of £25,000 had to be applied to that figure, but it did not apply to the statutory payment, which the Claimant was entitled to receive as well.

Our solicitors’ views on the case of Mrs S Ugradar v Lancashire Care NHS Foundation Trust

Sacha Barrett, a Senior Associate in the employment department at Redmans, made the following comments on the case: “This case highlights that the statutory cap of £25,000 which has stayed the same for twenty-five years, needs to be increased.  At its current level, there is a real risk that it will not adequately compensate some employees for the financial losses they have suffered in a breach of contract claim.’

The decision of the Employment Appeal Tribunal in Mrs S Ugradar v Lancashire Care NHS Foundation Trust UKEAT/0301/18/BA can be found here.

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

4.76 Average

127 Reviews

Djaouida T

You have good communication.

Posted 1 day ago

Anonymous

Fast and professional. A highly recommended company for employment related issues.

Posted 1 day ago

Anonymous

Very professional service.

Posted 1 day ago

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.

Posted 7 months ago

Jake L

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

Posted 9 months ago

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.

Posted 9 months ago

Anonymous

Very pleasant and quick to deal with. Mnay thanks.

Posted 9 months ago

Anonymous

Easy to get hold of. Quick.

Posted 9 months ago

Owen J

Very helpful, efficient service.

Posted 9 months ago

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 9 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 9 months ago

Mark A

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

Posted 9 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 9 months ago

Muhammad Z

Awesome services. Professionals at their best .

Posted 9 months ago

Anonymous

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

Posted 9 months ago

Chloe F

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

Posted 10 months ago

Anonymous

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

Posted 10 months ago

Tim O

Experienced and competent advisors

Posted 10 months ago

Rachel A

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

Posted 10 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 10 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 10 months ago