Redundancy settlement agreements: expert legal advice

You have been told your role is at risk or under notice of redundancy, and your employer has offered you a settlement agreement. Here is what you need to know before you sign.

What a redundancy settlement agreement is

A redundancy settlement agreement is offered instead of, or alongside, the statutory redundancy process. Your employer uses it to finalise your exit on agreed terms and to remove the possibility of an unfair dismissal or discrimination claim.

What you are entitled to in redundancy

  • Statutory redundancy pay (capped weekly rate, based on age and service).
  • Notice pay or payment in lieu of notice.
  • Accrued but untaken holiday pay.
  • Any contractual redundancy enhancement.
  • Any ex-gratia (goodwill) payment offered on top.
  • Outstanding bonus, commission, shares, or pension contributions.

What we check in a redundancy settlement

  • Whether the redundancy process was genuine, not a disguised dismissal.
  • Whether selection criteria were fair and properly applied.
  • Whether consultation was carried out properly.
  • Whether the financial offer exceeds the statutory minimum.
  • Whether protected characteristics were considered (age, pregnancy, disability).
  • Whether any ex-gratia payment is reasonable for your service and role.

Common issues we see

Unfair selection criteria

Vague or subjective scoring that does not stand up to scrutiny.

Sham redundancy

Your role still exists in substance, just renamed or restructured.

Failure to consult

Insufficient meetings, no genuine opportunity to influence outcome.

Age discrimination

Length of service used to push out older employees disproportionately.

Pregnancy and maternity

Selection during or after maternity leave without proper safeguards.

No suitable alternative employment

Vacant roles you could fill were not offered.

Frequently asked questions

Get expert advice on your settlement agreement today

Speak to a qualified solicitor the same working day. Your employer usually pays the legal fee as part of the agreement itself.

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