Does voluntary redundancy require a settlement agreement?

Employment Law Advice A voluntary redundancy usually includes an enhanced redundancy payment. If an employer accepts your offer of voluntary redundancy they will usually ask you to sign a settlement agreement (used to be called a compromise agreement).

Do I need a solicitor for voluntary redundancy?

In the event of your application for voluntary redundancy being accepted, the employer will most likely require you to sign a Settlement Agreement. Therefore it is a legal requirement of a Settlement Agreement that you obtain independent advice from a solicitor.

How do you negotiate a voluntary redundancy package?

Set out your objectives.
Check your contract of employment.
Check your employer’s redundancy policies.
Decide your negotiating strategy.
(Almost) always seek to negotiate the financial values.
Be clear and polite when negotiating.
Take good notes of meetings.
Do your research.

What is the difference between voluntary redundancy and a compromise agreement?

What is the difference between voluntary redundancy and a compromise agreement? The differences between compromise agreements (CA) and voluntary redundancy (VR) are subtle enough that you will see them described on various internet sites in more or less the same breath. The main differences are: in the legal intent.

Is it fair to offer settlement agreement instead of redundancy?

However, if redundancies become inevitable, an employer may offer a settlement agreement, even if they’re on furlough leave. Is it fair to offer the settlement agreement instead of redundancy? There is nothing wrong with this in principle.

What’s the difference between CA and voluntary redundancy?

in the wording – this varies, but a CA may include a ‘recital’ which sets out the situation which led to the termination, or it may simply say ‘by reason of redundancy’ – or it may say nothing at all about why the termination is happening. A voluntary redundancy will say clearly that this is what it is.

What are the different types of redundancy payments?

There are two types of redundancy payment. 1. Statutory Redundancy Payment A statutory redundancy payment is the minimum sum of money that your employer is required by law to pay you if you are made redundant. The amount of the statutory redundancy payment depends on three factors:

Why do you need a settlement agreement for redundancy?

A settlement agreement enables an employer to make a payment to an employee knowing that they can not (save for very specific circumstances) come back and claim more. This means it gives the employer certainty, and therefore must be worth their while paying more than the basic amount provided for in redundancy law.

How to tell if your redundancy package is a good deal?

How to tell if your redundancy package is a good deal Joanne O’Connell is founder of settlementagreement.co.uk, an online consumer resource offering free guides on settlement agreements. If your boss slaps a settlement agreement on our desk you’ve got a decision to make.

What happens if there is no need for compulsory redundancy?

If enough employees agree to voluntary redundancy and there is no need for compulsory redundancies, inform the affected employees, their representatives and the wider workforce of this as soon as possible, to allay concerns that other employees may have about the security of their jobs.