Redundancy Solicitors: Legal Advice on Redundancy & Settlement Agreements

Facing redundancy can be an uncertain and stressful experience. You may have questions about whether your employer is following a fair redundancy process, how much redundancy pay you are entitled to, or whether you should accept a settlement agreement.

Our redundancy solicitors at Consilia Legal provide expert employment law advice to employees and employers before, during and after the redundancy process. We can advise on redundancy consultations, settlement agreements, redundancy pay and potential unfair dismissal claims.

If you are facing redundancy or have a dispute with your employer, our employment law team offers a free initial discussion to understand your circumstances and explain how we may be able to help.

What is redundancy?

Redundancy occurs when an employer’s need for employees to carry out work of a particular kind reduces or ceases, or where a workplace closes. This can happen for many reasons, including business restructuring, financial pressures, technological changes or the closure of all or part of a business.

Redundancy can be a potentially fair reason for dismissal. However, employers must still follow a fair and reasonable process. Depending on the circumstances, failure to do so could result in an employee having grounds to bring an unfair dismissal claim.

Our employment law solicitors can advise you on the redundancy process and help determine whether your employer has acted fairly.

Redundancy and settlement agreements

A settlement agreement is a legally binding agreement between an employer and employee. It is often used to agree the terms on which an employee will leave their employment and settle specified potential legal claims.

Settlement agreements can be proposed by either an employer or employee and may arise during a redundancy process. The terms can cover matters such as termination payments, notice pay, holiday pay, references and confidentiality.

Negotiations often take place before the final terms are agreed. Settlement agreements are voluntary, meaning neither party is required to accept the terms offered.

For a settlement agreement to validly waive certain employment claims, the employee must receive advice from a relevant independent adviser, such as a solicitor, on the terms and effect of the agreement.

Employers commonly offer a contribution towards an employee’s legal fees for obtaining this advice. Where your employer provides a legal fee contribution, Consilia Legal can take this into account when calculating the cost of advising you.

Our settlement agreement solicitors can review the proposed agreement, explain its implications and advise you on whether the terms are appropriate for your circumstances.

What is the redundancy process?

A fair redundancy process will depend on the particular circumstances, including the number of employees affected.

Employers will generally need to consult affected employees and consider ways of avoiding or reducing redundancies. Where 20 or more redundancies are proposed at one establishment within a 90-day period, additional collective consultation requirements and statutory timescales can apply.

For smaller-scale redundancies, employers should still follow a fair process. This will commonly involve consultation with affected employees and genuine consideration of alternatives to redundancy.

Where an employer needs to select employees from a group for redundancy, it should use appropriate and objective redundancy selection criteria. Criteria may include factors such as skills, qualifications, performance and attendance, provided they are applied fairly and do not unlawfully discriminate.

Employers should also consider whether there is suitable alternative employment available within the organisation.

Employees who are made redundant will normally be entitled to the appropriate notice or payment in lieu of notice, together with payment for any accrued but untaken holiday and other contractual sums due.

If you are unsure whether your employer is following a fair redundancy procedure, our employment law team can assess your circumstances and explain your options.

Can redundancy be unfair dismissal?

Redundancy is one of the potentially fair reasons for dismissal under the Employment Rights Act 1996. However, the existence of a genuine redundancy situation does not automatically make a dismissal fair.

An employer should act reasonably and follow a fair procedure. Depending on the circumstances, relevant considerations can include:

• whether there was a genuine redundancy situation;
• whether appropriate consultation took place;
• whether the selection pool and criteria were fair;
• whether the criteria were applied fairly and without unlawful discrimination; and
• whether suitable alternative employment was properly considered.

If you believe you have been unfairly selected for redundancy or your employer failed to follow a fair process, it is important to obtain advice promptly.

Employment Tribunal claims are subject to strict time limits. For many employment claims, the usual time limit is three months less one day from the relevant event, although the precise deadline depends on the type of claim and circumstances. The ACAS Early Conciliation process can also affect how the deadline is calculated.

Our employment solicitors can advise you on whether you may have grounds for an unfair dismissal claim following redundancy and the steps you should take next.

How much redundancy pay am I entitled to?

Employees will generally qualify for statutory redundancy pay if they have been continuously employed by their employer for at least two years and meet the relevant eligibility requirements.

The amount of statutory redundancy pay depends on factors including:

• your age;
• your length of continuous service; and
• your weekly pay, subject to the applicable statutory limit.

Some employers offer enhanced redundancy pay above the statutory minimum. An enhanced redundancy package may arise under an employment contract, redundancy policy, collective agreement or other binding arrangement.

Our redundancy solicitors can review your employment documents and redundancy offer to help establish what you may be entitled to receive.

Do I need a solicitor for a redundancy settlement agreement?

If you have been offered a settlement agreement as part of your redundancy, obtaining independent legal advice is an essential part of making the agreement legally effective in waiving certain statutory employment claims.

A solicitor can explain what rights and potential claims you are being asked to give up and advise you on the terms being offered.

At Consilia Legal, we can advise on:

• redundancy and settlement agreement terms;
• redundancy and termination payments;
• notice pay and holiday entitlement;
• potential unfair dismissal or discrimination issues;
• restrictive covenants and confidentiality provisions; and
• negotiations over the proposed financial package.

Speak to our redundancy solicitors

Whether you are facing redundancy, have already been dismissed or have received a settlement agreement, getting legal advice early can help you understand your rights and make informed decisions.

The employment law team at Consilia Legal advises employees and employers on redundancy and settlement agreements. Our solicitors work with clients across Leeds, Harrogate, York, Sheffield, London and throughout England and Wales.

If you have questions about redundancy or would like expert employment law advice, we offer a free initial discussion to understand your circumstances.

Contact our friendly team at Consilia Legal today or email enquiries@consilialegal.co.uk to discuss your redundancy, settlement agreement or potential employment claim.