Allen & Ors v TRW Systems Ltd (Contract of Employment : Incorporation into Contract) [2013] UKEAT 0083_12_1701 (17 January 2013)

Allen & Ors v TRW Systems Ltd (Contract of Employment : Incorporation into Contract) [2013] UKEAT 0083_12_1701 (17 January 2013)

The Tribunal erred in law by failing to consider whether the express promise in the Employee Handbook and subsequent promises to implement the redundancy policy were contractual in nature and by not properly applying the criteria for incorporation set out in Albion Automotive Limited v Walker. The matter must be remitted for reconsideration by a freshly constituted Tribunal.

Citation
[2013] UKEAT 0083_12_1701
Parties
Appellants: Mr Allen and others; Respondent: TRW Systems Limited
Jurisdiction
United Kingdom
Judgment Date
17 January 2013
Procedural Posture
Employment Appeal / Appeal From Employment Tribunal
Outcome
Appeal allowed; case remitted for reconsideration
Legal Topics
Redundancy Policy, Contractual Incorporation, Employee Handbook, Implied Terms, Enhanced Redundancy Payments
Employment Law Contract Law Redundancy Policy Contractual Incorporation Employee Handbook Implied Terms Enhanced Redundancy Payments

Case Brief

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Parties

Mr Allen and others

Appellants

TRW Systems Limited

Respondent

Procedural Posture

Employment Appeal / Appeal From Employment Tribunal

Legal Issues

  1. 1 Whether enhanced redundancy terms in the redundancy policy were incorporated as contractual terms into employees' contracts
  2. 2 Whether the Employment Tribunal erred in law by failing to consider the contractual status of the Employee Handbook and subsequent promises
  3. 3 Whether the redundancy policy provided for three or four elements of payment

Ratio Decidendi

The Tribunal erred in law by failing to consider whether the express promise in the Employee Handbook and subsequent promises to implement the redundancy policy were contractual in nature and by not properly applying the criteria for incorporation set out in Albion Automotive Limited v Walker. The matter must be remitted for reconsideration by a freshly constituted Tribunal.

Court Disposition

Appeal allowed; case remitted for reconsideration

Orders

  • The case is remitted to a freshly constituted Tribunal for reconsideration of whether the enhanced redundancy payments were incorporated as contractual terms.