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Christopher Keeley v Fosroc International Ltd [2006] EWCA Civ 1277

As a matter of construction an enhanced redundancy payment provision set out in a staff handbook, which was incorporated by reference into an employee’s contract of employment, was apt to be a contractual term that conferred on the employee an express entitlement to a redundancy payment.

13 October 2006

The appellant employee (K) appealed against a decision that he was not entitled to an enhanced redundancy payment on his dismissal for redundancy by the respondent former employer (F). K’s contract of employment incorporated by reference F’s staff handbook. The handbook contained a number of provisions, many of which were expressed in terms of rights and obligations and were typical of contracts of employment between a large employer such as F and individual members of a largely unionised workforce. A provision in the part of the handbook entitled ‘employee benefits and rights’ provided that employees with two or more years’ continuous service were entitled to receive an enhanced redundancy payment from F. The provision made no reference to the manner of calculation. The judge, relying upon extraneous material, held that the provisions in the handbook were incorporated into K’s contract of employment in so far as they were apt to be terms of a contract of employment, but...

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