Mr K Beeney v Financial Ombudsman Service Limited — 2020

The claimant worked for the respondent as an adjudicator and accepted voluntary redundancy. The dispute concerned whether the respondent was contractually bound to pay a redundancy figure of £39,803.37, which had been confirmed after a meeting with HR, or whether the lower sum later calculated by reference to the claimant's part-time salary was the only amount payable.

The tribunal found that an apparent agreement was formed. It accepted the claimant's account that he queried the higher figure, was told by HR that the calculation was correct and that the scheme was generous, and then accepted the voluntary redundancy terms using the process provided. The tribunal found offer, acceptance, intention to create legal relations, and consideration in the claimant agreeing to leave employment.

The respondent argued that the agreement should not bind it because of mistake. The tribunal found that HR had made a mistake and that the respondent did not intend to pay part-time employees without pro-rating salary. However, it concluded that the claimant neither knew nor ought to have known of the mistake, having raised the issue and received an assurance from HR. Common mistake also did not apply. The claimant was therefore entitled to the difference between £39,803.37 and £23,882.02, namely £15,921.35.