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Redundancy pay not required unless written in contract

Question

Until recently, I was employed as a technical representative.

Although I had no formal employment contract, my remuneration package included the full use of a company car.

In April, I was made redundant. I received one month’s salary in lieu of notice plus 2 months salary as redundancy compensation.

A colleague who was also made redundant was given his company car at no cost.

Am I entitled to compensation for the loss of my company car?


Answer

No, an employee is not entitled to be paid redundancy compensation unless their employment contract states that it is payable or their employer agrees to pay it.

As you did not have a formal employment contract, your employer was not obliged to pay you any redundancy compensation at all, but chose to do so regardless.

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This article originally written by Alan Cressey the copyright of which is owned by The Evening Post
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Updated: 31st March 2010
Published: 28th September 1998
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