Re: How F***ing Much?
The payments are 'discretionary' in that they are not 'contractual', i.e. made in accordance with terms included in the employees contract of employment. However, the payments are quasi-contractual based on precedent, i.e. that the legacy companies have always offered redundancy on these terms in the past. If in future, the company offered different terms, then in the event of legal challenge in a tribunal or court, the tribunal / courts would generally enforce the pre-existing terms established by precedent. (However, if the new terms were not challenged and employees accepted redundancy on the new terms, then this could establish a new precedent and the company could be able to apply these terms to future redundancy rounds). Without the word 'discretionary', the company risks accepting that this is a general, albeit unstated contractual term.