Three Million Reasons to Check Employment Contracts

April 20, 2015
Three Million Reasons to Check Employment Contracts

An employer has been ordered to pay a former senior executive more than $2.9 million after a court found his employment contract incorporated the company’s unpublished redundancy policy.

The case involved claims by both the former CEO and the head of global markets at ABN Amro Australia Holdings Limited, whose roles became redundant when a consortium took over the company and merged it with the Royal Bank of Scotland.

The CEO claimed he was owed almost $3 million in redundancy entitlements, while the head of global markets sought close to $4.4 million.

They relied on existing redundancy policies and on undertakings made by the consortium about redundancy entitlements for employees affected by the merger.

These undertakings were in a “communication pack” circulated during takeover negotiations that said the consortium intended to manage any job losses through voluntary measures; to retain the best talent through “a fair appointment process based on merit and competencies”; and to guarantee that all existing ABN Amro redundancy policies and practices would remain in place for at least two years.

Source: HR Daily