Policy News Journal - 2013-14

Can the consistent practice of an employer calculating redundancy payments without the statutory caps convert into a contractual right for future practice?

Yes, held the EAT in Peacock Stores v Peregrine .

With thanks to Daniel Barnett’s employment law bulletin which summarises the facts of the case:

The employer had routinely paid redundancy pay to staff in accordance with the statutory redundancy scheme, except for the statutory caps relating to length of service and the amount of weekly pay being disapplied. The burden of proof fell on the claimant to show that there was a contractual entitlement to the uncapped payments, which was a question of fact. The former head of HR's evidence was accepted, that calculation of redundancy payment in the above manner was ""most definitely custom and practice"•. The Judge concluded that "there was 'a consistently applied and well understood policy of enhanced redundancy payments' and 'it is probable that remained the situation until 2002 when Mr Thomas was made redundant'"•. There was no evidence to the contrary. Once the position was reached that a contractual right to an uncapped redundancy payment was to be implied by custom and practice, a departure from that term by the employer would represent a breach.

Expenses and Benefits

Advisory Fuel Rates

ADVISORY FUEL RATES AS FROM 1 MARCH 2013

26 February 2013

HMRC has published the advisory fuel rates for company cars to operate as from 1 March 2013.

Since March 2011 rates have been reviewed four times a year and HMRC website holds details of the latest Advisory Fuel Rates along with links to rates dating back to 2002.

Employers are advised to review the latest available data in February, May, August and November each year.

Engine size

Petrol

LPG

1400cc or less

15p

10p (11p)

1401cc to 2000cc

18p

12p(13p)

Over 2000cc

26p

18p (18p)

Engine size

Diesel

1600cc or less

13p

1601cc to 2000cc

15p

Over 2000cc

18p

CIPP Policy News Journal

16/04/2014, Page 132 of 519

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