Redundancy policy

Q: Our employer has come up with new redundancy terms but says they are not contractual and won't apply again in the future. When is a redundancy policy contractual?

A: If the contract clearly states the redundancy terms or refers to a handbook or agreement where they are set out, they will be contractual.

If there is nothing clear in writing, a contractual term can be implied - for example, where the same redundancy terms have been given on each occasion. However, as the employer has stated that it does not intend to be bound by the terms currently under consideration, they should not be seen as forming part of employees' contracts.