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Arkley v Sea Fish Industry Authority - Construction of a contractual term as to enhanced redundancy pay [2010] EAT

An employer was stuck with contractual terms for enhanced redundancy payments even though new regulations introduced by Parliament meant it had become more expensive to provide such payments than when the relevant contract terms had been agreed.

Mr Arkley was was employed by the Sea Fish Industry Authority ("SFIA") from August 1985 until his dismissal by reason of redundancy in December 2008. He was then aged 51.

The SFIA operated a complicated enhanced redundancy payments scheme for employees with more than 10 years service.  In essence this gave the employee an option to choose between (i) a larger pension from the relevant occupational pension scheme with a lower cash sum on redundancy or (ii) a higher cash sum on redundancy but with a smaller pension.  Most employees chose the latter.  Mr Arkley however chose the former.

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