This case concerns a dispute between a worker and management regarding enhanced redundancy terms. The worker was seeking 6 weeks' pay per year of service inclusive of statutory entitlements with no cap. However, management contended that the worker was entitled to 4 weeks' pay per year of service capped at 12 years of service in accordance with their policies and procedures. 

The matter was referred to the Rights Commissioner for investigation who concluded in favour of management. The employee appealed this recommendation and the case was passed to the Labour Court. 

The employee worked for the company for over 23 years when made redundant and the company paid him an enhanced redundancy payment which was introduced in 2012, arguing that the payment of ‘ex gratia’ payments are at the discretion of the company. However, the claimant disputed this on the basis of custom and practice within the company.

The Labour Court noted that “due to the claimant’s very extensive service within the company the new terms had a significantly disproportionate effect on him when he was made redundant in 2012”. Thus, the Court, overturning the Rights Commissioner’s Recommendation, agreed with the claimant and recommended that he should be paid 6 weeks' pay per year of service, inclusive of the statutory redundancy payment, with no cap.

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