Redundancy & Settlement Agreements London & Cambridge

Redundancy

Settlement Agreements

Redundancy arises where a job ceases to exist. Employees have various rights during a redundancy process and the onus is on the employer to make sure that that they have done everything correctly and that the employee has been treated fairly.

Settlement agreements (formerly compromise agreements) are legally binding contracts for an employer and employee to settle any claims that have arisen under the employment relationship or due to the termination of employment. These agreements result in the employee waiving their rights to bring a claim against the employer in return for a severance payment.

Settlement agreements can be used in a wide variety of employment issues to resolve a grievance that has arisen or to deal with the termination of employment including equal pay, holiday pay issues and redundancy.

What does a settlement agreement include?

Where these agreements are used in relation to the termination of employment, they can cover a whole range of issues such as:

The relevant notice period and whether the employee is expected to work this in full.

What the redundancy package will be for the employee.

Holiday pay and any applicable bonuses.

What tax-free sum is being offered

If you accept a settlement agreement, you will be waiving future employment claims there are various requirements that need to be in place to protect the employee and make sure that the agreement is fair.
You must obtain independent legal advice before you agree to a settlement agreement. These agreements can be very technical and use complicated legal language. It is very important that they are carefully compiled and analysed to make sure that they are legally valid.
Contact Appleman Legal for advice on settlement agreements or any other employment issues you may have.