Redundant company secretary triumphs in £400,000+ claim

The former company secretary of a global mining concern, who received a £487,925 bonus after the company merged with a former rival, is entitled to £418,774 more after he was made redundant less than a year after the deal went through, the High Court has ruled.

The man received the ‘transaction bonus’ and warm thanks following the successful merger. However, on subsequently losing his job, a dispute arose as to whether his employment contract also entitled him to a ‘prescribed sum’ equivalent to a year’s salary, bonus, benefits and pension contributions.

In upholding the man’s claim, the Court rejected the company’s plea that the bonus was ‘in lieu’ of the prescribed sum. The terms of the contract were clear and the man had never agreed to forego his entitlement to the prescribed sum, either explicitly or impliedly by his acceptance of the bonus.

Contact: David Hacker