Claimant v Telecom Service Centres Ltd t/a Webhelp UK — 2021

The claimants had been employed by Thomas Cook before transferring to the respondent under TUPE on 1 October 2018. After Thomas Cook entered liquidation, the respondent undertook redundancy consultation and dismissed the claimants by reason of redundancy, paying redundancy payments calculated on the statutory formula. The liability issue was whether the claimants had a contractual entitlement to enhanced redundancy payments.

The Tribunal found that the April 2005 Thomas Cook redundancy policy and table gave a contractual entitlement for employees engaged before 1 July 2013. It relied on the mandatory wording of the policy, its agreement with TSSA, its inclusion in the HR Manual, and the way the policy was communicated and applied. The 2008 policy did not remove that entitlement, and the 2013 consultation preserved existing employees' redundancy terms while changing the approach for new starts.

The Tribunal found that the 2017 and 2018 policy wording describing enhanced redundancy payments as discretionary and non-contractual was not shown to be an agreed variation. The later TUPE and redundancy consultations did not produce an agreed concession or variation of the claimants' position. The Tribunal also found, in the alternative, that the enhanced redundancy terms had been incorporated by custom and practice because payment under the 2005 policy was reasonable, notorious and certain.

The Tribunal accepted that the respondent had acted in good faith on information received from Thomas Cook, but held that the contractual right to enhanced redundancy payments had transferred to the respondent. The claimants were therefore entitled to enhanced redundancy payments calculated by reference to the April 2005 Thomas Cook redundancy policy and table, with quantum reserved.