For obvious reasons, we’ve seen a significant increase in people needing advice on settlement agreements due to redundancy. Many people remain on furlough leave and are being handed a settlement agreement in order to terminate their employment.
Sometimes this can be through a voluntary redundancy scheme, or just a way for an employer to shortcut the redundancy process.
There’s two different redundancy approaches that are commonly seen:
- Enhanced redundancy, an ex-gratia payment, or termination package.
- Standard statutory redundancy pay with no increase.
As long as the company are making other redundancies, and you aren’t just being targeted for termination, then either is likely to be a deal that can be signed off.
Look at it this way, if you don’t sign, then you will go through the usual redundancy process and be made redundant at the end of it.
We advised an employee recently on a settlement agreement where they were getting an enhanced redundancy payment of about double the statutory redundancy process.
We turned around our advice within 24 hours and the settlement agreement was completed and concluded within a matter of days.
So if you’re being made redundant and have been given a settlement agreement, you still need advice from a solicitor on it and we’d be delighted to help you.