Status Of Enhanced Redundancy Terms

In Keeley v. Fosroc International Limited the Court of Appeal held that the mere mention that employees were "entitled" to enhanced redundancy pay in a staff handbook made it contractually binding even though there was no methodology for calculating the enhanced redundancy payment in the staff handbook.

The Court of Appeal examined the structure and content of the employee handbook. Giving the judgment of the Court, Lord Justice Auld held it was "highly relevant to consider the importance of the provision to the overall bargain of the employees’ remuneration package." He went on to say that "provision for redundancy, notwithstanding statutory entitlement, is now a widely accepted feature of an employee’s remuneration package and as such, is particularly apt for incorporation by reference into the employee’s contract".