McGowan v Readman & Anor [2000] ScotCS 54 (2 March 2000)

McGowan v Readman & Anor [2000] ScotCS 54 (2 March 2000)

The collective agreement of 20 November 1985, properly construed, did not guarantee an enhanced redundancy payment in cases involving more than fifteen redundancies, but reserved the amount for negotiation subject only to the statutory minimum. There was insufficient evidence to imply a contractual term by custom and practice entitling the pursuer to an enhanced redundancy payment.

Citation
[2000] ScotCS 54
Parties
Pursuer: Douglas McGowan; Defender: J. C. J. Readman; Defender: G. Ritchie
Jurisdiction
Scotland
Judgment Date
02 March 2000
Procedural Posture
Civil / Outer House, Court of Session, Opinion After Proof
Outcome
Partially allowed
Legal Topics
Redundancy Payments, Collective Agreements, Implied Terms, Custom and Practice, Contract Interpretation
Employment Law Contract Law Redundancy Payments Collective Agreements Implied Terms Custom and Practice Contract Interpretation

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Parties

Douglas McGowan

Pursuer

J. C. J. Readman

Defender

G. Ritchie

Defender

Procedural Posture

Civil / Outer House, Court of Session, Opinion After Proof

Legal Issues

  1. 1 Whether the pursuer was entitled to an enhanced redundancy payment under his contract of employment or by custom and practice
  2. 2 Proper construction of the collective agreement of 20 November 1985 regarding redundancy payments

Ratio Decidendi

The collective agreement of 20 November 1985, properly construed, did not guarantee an enhanced redundancy payment in cases involving more than fifteen redundancies, but reserved the amount for negotiation subject only to the statutory minimum. There was insufficient evidence to imply a contractual term by custom and practice entitling the pursuer to an enhanced redundancy payment.

Court Disposition

Partially allowed

Orders

  • Decree for payment by the defenders jointly and severally to the pursuer of £170 in respect of pay in lieu of notice, with interest at 8% per annum from 29 April 1994 until payment.
  • Pursuer's claim for enhanced redundancy payment refused.