In Kraft Foods UK Ltd v Hastie EAT/0024/10, the EAT held that a contractual redundancy scheme that capped payments at the total amount of earnings that the employee would have received prior to retirement was justified as a proportionate means of preventing redundant employees from receiving a windfall.
The Employment Appeal Tribunal has held that, when deciding whether or not a redundant employee's refusal of an offer of suitable alternative employment is reasonable, an employment tribunal is entitled to take into account the degree of suitability of the new job.
In Jackson v Computershare Investor Services plc [2007] EWCA Civ 1065, the Court of Appeal ruled that the provision in the TUPE Regulations to the effect that a transferred contract of employment will have effect after the transfer as if originally made between the employee and the transferee could not be construed so as to give the employee a contractual benefit to which she had not been entitled under her original contract.
In Keeley v Fosroc International Ltd [2006] IRLR 961, the Court of Appeal held that a provision for enhanced redundancy payments set out in a staff handbook that was incorporated into the employment contract constituted an express term of the individual contract of employment, thus conferring a contractual right to the payment.