Claimant v North Yorkshire County Council

Outcome

Facts

The claimant had 34 years' local government service, transferring to the respondent from Hambleton District Council under TUPE in April 2023. When made redundant in July 2024, she claimed entitlement to an enhanced redundancy payment of around £34,000 based on a formula in HDC's policies. The respondent argued the enhancement was discretionary, requiring a sound business case. Only one redundancy had occurred at HDC in the prior seven years, and that person received enhanced payment. The policies contained conflicting language, some suggesting automatic application, others stating they conferred no contractual rights and required case-by-case decisions.

Decision

The tribunal dismissed the claim, finding the enhanced redundancy payment was not an implied contractual term. While HDC had adopted policies under the 2006 Regulations permitting enhanced payments, these policies consistently described enhancements as discretionary, expressly stated they conferred no contractual rights, and required a sound business case. The claimant had not established custom and practice through sufficient frequency and consistency of application. She had a right to have the discretion considered, not an automatic entitlement.

Practical note

Legal authorities cited