The redundancy policy in TRW's employee handbook provided for enhanced payments. The terms had been agreed with TRW's works council and were repeated several times in letters issued to the workforce.
The issue was whether the enhanced redundancy terms were contractual, binding TRW and forcing it to pay these more favourable settlements.
The tribunal held not. The terms had not been incorporated into employment contracts because they were not referred to in the written statement of terms. But the Employment Tribunal (EAT) thought otherwise and overturned that decision. The tribunal should have taken account of the works council agreement, the express promise in the employee handbook and the assurances repeated in letters to employees. It was fair for the employees to have had a reasonable expectation of receiving the enhanced terms, the EAT said.
The case has been sent to a different tribunal to decide again.
The issue was whether the enhanced redundancy terms were contractual, binding TRW and forcing it to pay these more favourable settlements.
The tribunal held not. The terms had not been incorporated into employment contracts because they were not referred to in the written statement of terms. But the Employment Tribunal (EAT) thought otherwise and overturned that decision. The tribunal should have taken account of the works council agreement, the express promise in the employee handbook and the assurances repeated in letters to employees. It was fair for the employees to have had a reasonable expectation of receiving the enhanced terms, the EAT said.
The case has been sent to a different tribunal to decide again.
No comments:
Post a Comment