The case of Evergreen Timber Frames v Mr N K Harrington concerned a claim that an offer made during such a negotiation process was contractually binding as it had amounted to a promise of a gift regardless of whether the other terms of the settlement were accepted or not.
Harrington, a manager, had been told that his role was at risk of redundancy. As part of the process leading up to him leaving there were various meetings and discussions relating to the financial package with which he would leave.
As the negotiations advanced and his leaving date grew near, a draft offer was put to him in which he was reassured that he would get to keep his company car as it would be a gift. Harrington said he would accept the offer but also wanted to be able to keep his company computer, and required an assurance he would still receive his bonus. The employer did not agree to his further requests and told him that he would not be allowed to keep the company car as no settlement had been reached.
The Employment Tribunal erred in concluding that the parties entered into a contractually binding agreement by which ownership of a car would transfer from the employer to Harrington upon the termination of his employment. Although the Employment Tribunal did not err in deciding that a proposal described as a “gift” was an offer, one of the ingredients of a contract, it erred in concluding that Harrington could accept part of the employer’s offer insofar as it related to the car while seeking to improve upon other parts of the offer.
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
