The Covid-19 has hit workers hard, with many being furloughed and then facing redundancy as restrictions are lifted. In times of great uncertainty, it’s both important and reassuring to know exactly where you stand when it comes to the unfamiliar processes around being made redundant.
A well-negotiated Redundancy Settlement Agreement can certainly leave you better off. Additionally, if you have professionals helping you through the process, you’ll almost certainly benefit from greater peace of mind and some certainty in these times.
Jackson Lees’ Settlement Agreement specialists are seeing a surge in enquires. This is mirrored in the BBC's report of rising numbers of people seeking assistance with redundancy. Our redundancy lawyers are supporting a range of clients in reviewing and negotiating severance packages to ensure they are fair and reasonable.
As many people’s employment status becomes less secure, our trusted support and pragmatic solutions (based on individual circumstances rather than template agreements) are helping our clients get the best possible agreement.
If you think you’re in danger of redundancy, please contact a member of our team for a free initial introductory meeting.
Get in touch for your free initial introductory meeting
What are Settlement Agreements?
Settlement Agreements are a legally binding way for you and your employer to part company on agreed terms. It’s important that the Settlement Agreement is fair in the context of your individual circumstances. Each case is different; one person may be looking for financial security, another may need a good reference for a future employer.
Under the Settlement Agreement you will give up your right to bring any claims against your employer. However, there are three types of claim that cannot be waived. These are:
- Personal Injury claims – where you are unaware of the injury at the time of signing the Settlement Agreement. For example, Asbestosis poisoning due to exposure to Asbestos at work.
- Claims for accrued pension rights and contributions.
- Enforcing the terms of the Settlement Agreement.
It is important to note that you do not have to accept the Settlement Agreement that has been offered to you.
However, not accepting could leave you in a predicament.
- Your employer may be able to dismiss you or make you redundant.
- You may not get a better offer.
If your Settlement Agreement says “Without Prejudice Subject to Contract” this means that the proposed draft is ‘off the record’ until you and your employer come to an agreement. This allows parties to correspond freely and openly when trying to reach a final agreement.
How much will this cost and how can I pay for it?
Employers usually agree to pay an agreed amount towards the legal fees of an employee obtaining independent legal advice. This is usually between £250 and £600+vat. We can give you an idea of what it will cost to negotiate your Settlement Agreement as part of our free initial consultation.
- If your situation is complex, we may be able to negotiate with your employer and agree a higher contribution from them.
- Alternatively, it may be worthwhile you funding some of your own legal fees in order to achieve a better deal.
Do bear in mind however that your employer’s contribution to your legal fees is only valid if you sign the Settlement Agreement. If you decide not to accept the terms offered, you may have to pay your own costs.
Unfair dismissal/discrimination
If any of the following has happened to you, you may have grounds for an employment claim:
- Unfair dismissal
- Constructive dismissal
- Discrimination
If this is the case, then you should consider bringing a claim against your employer in an Employment Tribunal before you enter into negotiations for a Settlement Agreement. In this instance you really will benefit from professional help as things can get quite complicated.
Support at a social distance
Our team are working as normal, despite the current social distancing measures. We have specialist employment lawyers available on email and for telephone or video consultations. Together we can work to achieve the best agreement for you whilst giving you peace of mind as you navigate the processes around the end of your employment.
You deserve fairness and certainty, so, to get a better idea of where you stand regarding redundancy and your Settlement Agreement, please contact a member of our supportive litigation team today by calling 0151 282 1700 or emailing enquiry@jacksonlees.co.uk.
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