Arkley v Sea Fish Industry Authority [2010] UKEAT 0505_09_1504 (15 April 2010)

Arkley v Sea Fish Industry Authority [2010] UKEAT 0505_09_1504 (15 April 2010)

The redundancy payment policy was couched in mandatory terms, entitling the claimant to a 10-year enhancement to his pension unless one of three specified exceptions applied. The employer's failure to offer this option, absent consensual variation, constituted a breach of contract.

Citation
[2010] UKEAT 0505_09_1504
Parties
Claimant: Mr Arkley; Respondent: Sea Fish Industry Authority
Jurisdiction
United Kingdom
Judgment Date
15 April 2010
Procedural Posture
Employment Appeal / Appeal Against Employment Tribunal Majority Decision
Outcome
Appeal allowed; finding of breach of contract substituted.
Legal Topics
Redundancy Pay, Breach of Contract, Construction of Contractual Terms, Employment Contracts
Employment Law Contract Law Redundancy Pay Breach of Contract Construction of Contractual Terms Employment Contracts

Case Brief

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Parties

Mr Arkley

Claimant

Sea Fish Industry Authority

Respondent

Procedural Posture

Employment Appeal / Appeal Against Employment Tribunal Majority Decision

Legal Issues

  1. 1 Proper construction of contractual term regarding enhanced redundancy pay
  2. 2 Whether employer had discretion to limit enhancement below 10 years
  3. 3 Whether failure to offer 10-year enhancement was breach of contract

Ratio Decidendi

The redundancy payment policy was couched in mandatory terms, entitling the claimant to a 10-year enhancement to his pension unless one of three specified exceptions applied. The employer's failure to offer this option, absent consensual variation, constituted a breach of contract.

Court Disposition

Appeal allowed; finding of breach of contract substituted.

Orders

  • Case remitted to an employment tribunal for assessment of compensation for breach of contract.