Are you considering voluntary redundancy?
If so, follow our short and informative guide….
- In a redundancy situation an employer must demonstrate that there is either a reduced need for work of a particular kind, for example, a certain role is no longer required due to a reduction in orders, or the business is closing;
- In the event of redundancies being necessary, it is common for the employer to explore the option of voluntary redundancies to reduce numbers prior to any compulsory redundancies taking place;
- In these circumstances, the employee is usually offered an enhanced payment as an incentive for taking voluntary redundancy and the employer may ask the employee to sign a Settlement Agreement (previously known as a Compromise Agreement);
- A Settlement Agreement is a legally binding document where the employee agrees that they will not pursue an Employment Tribunal claim (often for unfair dismissal) against the employer in return for the enhanced payment or compensation;
- The employee has to obtain independent legal advice from a solicitor on the terms of the Settlement Agreement and the employer will make a contribution towards the legal costs to do so.
Our specialist and leading team of employment solicitors will run through the terms of the Settlement Agreement, in full, with you during a meeting so you understand the implications and we will advise you on whether the financial offer is sufficient under your circumstances. We can negotiate directly with your employer or their solicitor on your behalf, so you don’t have to worry.
We have the expertise to guide you through this stressful process and secure the best possible result for you. Please contact us on 01522 512345 (Lincoln) or 01472 262626 (Grimsby) and ask for the employment teams.
Or, find out more information on Voluntary Redundancy here.